coca-cola hbc - towards sustainability · 2016-02-24 · coca-cola hellenic has reported on its...
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Towards SustainabilitySocial Responsibility Report 2010
WaterStewardship
Energy and Climate Change
Packaging and Recycling
ConsumerHealth
EmployeeDevelopment
SupplierEngagement
CommunityInvolvement
Contents
Message from the Board p.1
Business Overview p.2
Sustainability Milestones p.4
Targets and Progress p.6
Managing Our Impacts p.8
Integrating Sustainability p.10
Engaging Stakeholders p.13
Water Stewardship p.16
Energy and Climate Change p.24
Packaging and Recycling p.30
Consumer Health p.34
Employee Development p.40
Supplier Engagement p.46
Community Involvement p.52
Supporting the UN Global Compact p.56
Environmental Data Table p.58
Social and Economic Data Table p.60
GRI Index p.61
Awards and Recognition p.62
Validation Statement p.64
Stakeholder Review Statement p.66
Glossary of Terms p.68
About Our Reporting
Coca-Cola Hellenic has reported on its corporate sustainability performance each year since 2003. Aimed at NGOs, analysts and investors, government and other opinion leaders, this re-port focuses on the sustainability issues of greatest concern to our stakeholders and our business. The report also serves as our Communication on Progress to the UN Global Compact.
Our reporting is guided by the three principles of the AA 1000 Assurance Standard: materiality, inclusiveness, and respon-siveness. We use leading standards and methodologies for measuring and reporting impacts, such as the Greenhouse Gas Protocol and the Global Reporting Initiative (GRI). This report has been assessed by the report auditor to meet GRI application Level A+. We aim to report fully against the new sector supple-ment for the food processing industry in the 2011 report.
Following stakeholder requests, we have reintroduced inde-pendent assurance of our sustainability reporting. In addition, our environmental, quality, health and safety management systems and data are audited annually by third-parties at all 77 bottling plants. At Group level, community investment data are submitted to London Benchmarking Group (LBG) for checks, while our compliance with industry codes on responsible sales and marketing is periodically assessed by independent audi-
tors. Suppliers are also independently audited for compliance with our Supplier Guiding Principles.
This report includes full data for calendar year 2010 pertaining to the bottling, distribution and sales activities in all 28 countries of operation. The following investments are not considered here: our brewing interests in the Former Yugoslav Republic of Macedonia (FYROM) and Bulgaria, Greek snacks company Tsakiris, and vending businesses in Hungary, Ireland and Italy. None of these represents more than 1% of revenue.
To promote transparency and comparability, we have adopted the 2004 baseline used by the global Coca-Cola System for re-porting environmental performance. We no longer report results against our original baseline of 2002. More information about our sustainability strategy and programmes – including Disclosures of Management Approach - can be found on the corporate web-site. The growing number of local websites and country-level sustainability reports are another source of information.
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Dear Fellow Stakeholders,
The year 2010 marked the tenth anniversary of Coca-Cola Hellenic. As we enter our sec-ond decade, we shall intensify our efforts to ensure that our business and our communi-ties continue to thrive.
Sustainability is usually de-fined, following the Brundtland Commission Report of 1987,
as the ability to meet the needs of the present without com-promising the ability of future generations to meet their own needs. We have already made significant strides in our sus-tainability initiatives, but there is no room for complacency. The hard decisions required of governments, companies and individuals if we are to achieve a sustainable world are soberly set out in the WWF’s recent One Planet Report. At Coca-Cola Hellenic we recognize our responsibilities.
We have therefore stepped up our climate commitments and are now adding photovoltaic panels to factory rooftops in addition to the construction of combined heat and power (CHP) units. In 2010, we commissioned a further three units, showcasing the technology with suppliers, customers, gov-ernments and others. On completion, the programme will cut CO
2 emissions from manufacturing. In addition, we are close
to completing construction of wastewater treatment plants
wherever municipalities do not or cannot treat wastewater to
Coca-Cola Hellenic’s standards. In 2010, 97% of our wastewa-
ter was treated. We have developed further community water partnerships, and received a second special commendation in 2010 for water stewardship efforts across our business.
We are reinforcing our efforts to certify our plants against internationally recognised standards for quality (ISO 9001),
environment (ISO 14001), food safety (ISO 22000 and FSSC
22000) and occupational health and safety (OHSAS 18001).
By 2012, we expect all plants to be fully certified.
Given that we operate in many developing and emerging
markets, these achievements are significant. In Armenia,
we have gained certification for quality, food safety, environ-
ment, health and safety and were the first company to in-stall wastewater treatment in full compliance with European standards. Yet these ambitions not surprisingly brought with
them challenges. The scale of our CHP programme and its innovative quad-generation technology caused administra-tive delays in some countries – as did our wastewater treat-ment plants.
Perhaps the most significant way we are stepping up our efforts is in managing our indirect impacts: the sustainabil-ity challenges inherent in our supply chain. Since the bulk of our corporate water footprint is in sugar production, we now work with sugar suppliers to understand and address our indirect water use. Similarly, the largest contributors to our carbon footprint sit in our value chain: the manufacture of beverage packaging and use of cooling equipment. We therefore partnered with suppliers to develop more energy efficient coolers. We have made our packaging lighter and included recycled content. In addition, we led the establish-ment of recovery organisations in 19 countries.
Throughout the recession, we have worked to protect jobs in our business and our supply chain, and we have offered increased opportunities for training and development. En-couragingly, engagement levels in 2010 were 13 percentage points higher than in the previous survey.
The number of serious accidents continues to fall. Our safety programme has led to a 39% reduction since 2009. Regret-tably, we continued to experience fatalities. We are doing all we can to eliminate them.
Long-term strategic partnerships are essential to the success of our sustainability efforts. At global level, we are a long-standing and active participant in the UN Global Compact – in global platforms and local networks –which requires commit-ment to recognised principles of good corporate citizenship.
Our sustainability goals are long-term, building value for our business and our communities, and we already see benefits. In addition to cost efficiencies, we gain reputational advan-tage as an employer, business partner, community member and business in which to invest. In 2010, we retained our listing on the Dow Jones Sustainability Indexes (World and STOXX) for the third consecutive year. As a result, we are among the top 10% of companies worldwide and top four beverage companies for sustainability. We were also includ-ed in the Ethibel EXCELLENCE Investment Register.
We hope this report provides the information you seek. As always, we welcome your comments.
Sir Michael Llewellyn SmithChairman, Social Responsibility Committee
Message from the Board
Volume
(million unit cases)
Net Sales Revenue
(million €)
1,788 5,6162,019 6,4622,115 6,9812,069 6,5442,100 6,794
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Across its territories, Coca-Cola Hellenic owns and operates 77
bottling plants and 365 warehouses and distribution centres.
By producing and distributing beverages locally, we remain
close to our customers and consumers. This business model
also generates local employment and supports local suppliers,
while minimising the environmental impacts of transportation.
Beverages and Brands
We offer a diverse range of ready-to-drink non-alcoholic bever-
ages. In addition to sparkling soft drinks, we produce waters, juic-
es and juice drinks, sports and energy beverages, ready-to-drink
teas and coffees. We also offer reduced-calorie options, as well
as beverages with health and wellness benefits. In addition to
producing such global brands as Coca-Cola, Fanta and Sprite, we
offer many local brands which are designed to meet local tastes.
The Coca-Cola System
Coca-Cola Hellenic produces and distributes beverages un-
der licence agreements with The Coca-Cola Company. These
brands represented 89% of our Company’s sales in 2010.
Brands belonging to other companies, such as Nestea, illy
café, Dr Pepper, Schweppes and Tuborg, accounted for 7% of
sales. Our own brands, such as Amita juices and Avra mineral
water, represented the final 4% of sales.
With annual sales of more than two billion unit cases, Coca-Cola Hellenic is one of the largest bottlers of products of The Coca-Cola Company. Operating in 28 countries, the Company serves a diverse population of approximately 560 million people.
EBITDA: €1.1 billion
Bottling plants: 77
Sales: 2.1 billion unit cases
Employees: 43,189
Emerging markets
Armenia
Belarus
Bosnia and Herzegovina
Bulgaria
FYROM
Moldova
Montenegro
Nigeria
Romania
Russia
Serbia
Ukraine
Developing markets Croatia
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Poland
Slovakia
Slovenia
Established markets
Austria
Cyprus
Greece
Italy
Northern Ireland
Republic of Ireland
Switzerland
Business Overview
• • • • •
• • • • •
• • • • •
Net Profit
(million €)
Return on Invested Capital
(percent)
38010,4
472 12,2424 11417 10,4450 10,7
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Sustainability
Over the past decade, we have worked hard to integrate sus-
tainability considerations into the way we do business. With
a large part of our business in the developing and emerging
economies of Eastern Europe and Nigeria, we aim to take a
leadership role. Since 2008, Coca-Cola Hellenic has been listed
on the Dow Jones Sustainability Indexes (World and STOXX),
placing us among the top 10% of companies for sustainability
worldwide. We are the only European soft drinks company on
the Indexes.
Ownership
Our largest shareholders are the Kar-Tess Group and The
Coca-Cola Company. Coca-Cola Hellenic shares are listed on
the Athens Stock Exchange, with a secondary listing on the
London Stock Exchange. American Depository Receipts are
listed on the New York Stock Exchange.
ABOUT USPROdUCT PORTFOLIOSUSTAINABILITYANALYST RATINGS
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2000Creation of Coca-Cola Hellenic Bottling Company
2001First country operation certified ISO 14001 - commitment to certify all operations
Acquired Russian Coca-Cola operations
2002FTSE4Good listing confirmed
Launched WWF Water Savers tool
Acquired Baltics Coca-Cola operations
Acquired mineral water companies Valser in Switzerland and dorna Apemin in Romania
2003Formed Social Responsibility Committee of the Board and executive-level council
First country operations certified OHSAS 18001 - commitment to certify all operations
Acquired mineral water companies Römerquelle in Austria and Multivita in Poland
2004First CSR Policies ratified for Human Rights, Equality of Opportunity, HIV/AIdS, Health & Safety, Environment and Quality
First GRI report in the non-alcoholic beverage industry
Acquired mineral water company Gotalka in Croatia
2005Launched Green danube Partnership with ICPdR
Signed the UN Global Compact
Ratified the UNESdA commitments
Acquired mineral water companies Bankya in Bulgaria, Vlasinka in Serbia and fruit juice company Multon in Russia
Sustainability Milestones
Production Volume (million unit cases)
Total Water Use (million litres)
Total Energy Use (million MJ)
Total Landfilled Waste (million kg)
BUSINESS MILESTONES
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2006
Annual sales of waters and juices exceeded 33% of volume for first time
Stopped using HFCs in insulation of Cold drink Equipment
Named Notable Reporter by the UN Global Compact
Launched front-of-pack nutritional labelling in all EU countries
Acquired mineral water company Fonti del Vulture in Italy, fruit juice company Fresh&Co in Serbia and beverage and dairy company Lanitis in Cyprus
2007Signed CEO Water Mandate, Caring for Climate statement and the Bali Communiqué
Opened 1st industry-owned PET-to-PET recycling plant in Europe
Launched Green IT initiative
Joined London Benchmarking Group (LBG)
Joined CSR Europe
First country operations certified ISO 22000 - commitment to certify all operations
Acquired beverage company Aquavision in Russia
2008Included in the dow Jones Sustainability Index
Launched Stakeholder Panel
Launched the “Business friends of the danube” fund
Extended Safe and Eco-driving courses to all countries
Increased use of recycled PET by 70% vs previous year
Launched three-year safety plan
Αcquired Southern Italy Coca-Cola bottling operations
2009Started construction of 15 CHP units to reduce CO
2
from bottling operations by over 20%
First absolute reductions in water, energy and waste in operations
Over two-thirds of operations certified ISO9001, ISO14001, OHSAS 18001 and ISO 22000
First submission to Carbon disclosure Project
First report on implementation of CEO Water Mandate and Caring for Climate
First corporate water footprint
2010Signed Consumer Goods Forum resolutions on deforestation and refrigeration
Launched solar energy programme
3rd consecutive year of absolute water reduction
Launched carbon-efficient fleet of commercial coolers
Anti-corruption training rolled out across all operations
Employer of choice awards in 16 countries
13-point rise in employee engagement since 2007
Founding member of European Water Footprint Sustainability Assessment Sounding Board for Sugar
First Stakeholder review of CSR Report
Over 99% of volume produced by ISO 9001 certified plants
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Targets 2010 Progress Future Goals
Water Stewardship
Reduce operational water footprint by 40% vs 2003
Reduce water ratio by 2% vs 2009No increase in absolute water use
Ensure 100% of wastewater is treated by 2010
Expand water risk assessments
Expand water stewardship programmes
Expand ISO 14001 certifications
Reduced operational water footprint by 48% vs 2004Established European Water Footprint Sustainability Assessment Sounding Board for Sugar
Reduced water ratio by 4% (now 19% below 2004). Absolute reduction in water use for third consecutive year
97% of wastewater treated. Final wastewater treatment plant under construction
Source vulnerability assessments now cover 28 plants
Programmes in 26 countries, covering all major rivers
Five more plants certified, now cover 91% of total
Understand and reduce supply chain footprint
Reduce 2011 water ratio by 3% vs 2010 and 2020 ratio by 40% vs 2004No increase in absolute water use
Ensure 100% of wastewater treated at all times
Source vulnerability protection plans in all plants by 2012
Expand water stewardship programmes to all countries
All plants certified ISO 14001 by 2012
Energy and Climate Change
Reduce energy ratio by 2% vs 2009
Build three CHP units; 15 by 2011
No increase in operational CO2
emissions
Expand energy-efficient and HFC-free cooler fleet
Install photovoltaic panels on roofs of bottling plants
Increased energy ratio by 0.6% (now 22% below 2004)
Two CHP units built, 5 under construction
Operational CO2 ratio reduced 1.2%
Purchased 23,400 energy-efficient HFC-free coolers
Photovoltaic panels installed at five Italian plants
Reduce 2011 energy ratio by 3% vs 2010
Cut CO2 emissions in production by 25%
Reduce CO2 emissions by 20%
by 2020 vs 2004 baseline
Cooler fleet to be 50% more energy-efficient by 2020 vs 2004
Expand to four plants in other Mediterranean sites
Packagingand Recycling
Improve packaging efficiency by 25% by 2012
Reduce material use through lightweighting
Increase use of rPET in new bottles
Recycle 50% of post-consumer beverage containers in Europe by 2015
Increase recycling rate in bottling plants by 2% vs 2009
Reduce landfilled waste from bottling plants
Packaging efficiency decreased 7%
Saved 5,000 tonnes of PET through lightweighting
Used 6,500 tonnes of rPET
Recycled equivalent of 64% of packaging in Europe. Led establishment of two new recovery organisations; 19 to date.
Recycling rate increased 2.4% to 85%
Landfilled waste reduced by 20%
Improve packaging efficiency by 25% by 2012
Save a further 3,500 tonnes of PET through lightweighting
Use 6,500 tonnes of recycled rPET
Enhance post-consumer packaging collection and recycling in all compliance schemes
Recycle over 90% of plant waste by 2015
Reduce total landfilled waste by 80% vs 2004 by 2020
Targets and Progress
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Targets 2010 Progress Future Goals
Consumer Health
Continue to expand beverage range
Reduce average calorie content
Extend GDA labels to all products in the EU
Expand ISO 9001 (Quality) certifications
Expand food safety certifications ISO 22000 and FSSC 22000
Encourage physical activity among consumers
100 new juices, flavours, package sizes
Average calorie content decreased 0.5%, now 19% below 2001. Low-calorie beverages including waters account for 26% of volume
GDA labels on all products in the EU, where practical
75 plants certified ISO 9001, covering 99.6% of volume
60 plants certified ISO 22000, covering 78% of volume
1.2 million participants in sports and fitness programmes
Continuously adapt to consumer preferences
Continue to reduce average calorie content. Promote diet and light beverages
Extend front-of-pack calorie information to all product labels in non-EU countries
All plants certified ISO 9001 by 2012
All plants certified ISO 22000 by 2012
Expand programme to all countries
Employee Development
Improve employee engagement
Improve safety performance
Expand OHSAS 18001 certifications
Extend Leadership Pipeline to all managers
Certify all employees in new anti-corruption training
Develop employees to their full potential
Engagement levels 56%, now 13% above 2007
Serious accidents down 39% since 2009, but fatalities increased
65 plants certified, now cover 93% of employees
Leadership Pipeline expanded to 100% of managers
73% of email-enabled employees certified on Code of Business Conduct
Employee training rose to 21 hours per year
Achieve engagement levels equivalent to high-performing norm
Continue to improve safety performance
All plants certified OHSAS 18001 by 2012
Incorporate leadership pipeline model into HR processes for managers
Train and certify all employees
Roll-out CSR training for all managers. Set targets for internal promotion
Supplier Engagement
Expand audit programme to more suppliers
Explore positive screening and integration of environmental criteria
Address global footprint with suppliers
Engage more with suppliers
61 supplier sites audited; 121 to date
Work on Pilot Scorecard to assess carbon reduction strategy for packaging suppliers
Worked with sugar refiners to understand water footprint
Included suppliers in Stakeholder Panel
Expand joint audit programme to more suppliers
Refine Pilot Scorecard
Work with sugar suppliers to improve their water footprint
Deepen dialogue with suppliers
Community Involvement
Maintain community investment at 1.5% pre-tax profit throughout recession
Deepen relation with Red Cross societies
Contributed €9.5 million, 1.4% pre-tax profit
6,000 employees volunteered
Worked with national Red Cross organisations in ten countries; Provided relief in nine countries
Maintain current levels of community investment
Encourage employee volunteerism
Expand programmes to more countries
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Managing Our Impacts
Suppliers
Our ingredients, packaging and other goods and services come from 84,000 suppliers.
Water use in our agricultural supply chain accounts for the greatest share of our water footprint. We and The Coca-Cola Company are working with sugar producers to better understand its impacts.
Packaging represents the greatest source of CO
2 emissions in our supply
chain. Through collaboration, we re-duce the weight of our beverage con-tainers, and increase recycled content.
We also work with suppliers to de-velop low-carbon technologies, such as our pioneering work to develop cli-mate-friendly refrigeration and com-bined heat and power (CHP) plants that use quad-generation technology.
Almost 90% of our supplier spend is within our countries of operation, sup-porting local jobs and economies. Our independently audited Supplier Guid-ing Principles programme aims to ensure good workplace practices in suppliers.
Bottling Plants
We own and operate 77 plants and 365 warehouses and distribution centres, in addition to corporate offices. Our business employed 43,189 people at the end of 2010.
Since 2004, we have significantly re-duced the environmental impacts of our operations. We have improved our energy and water use efficiency by 22% and 19% respectively.
We also implement transformational programmes such as the construction of combined heat and power (CHP) plants to reduce carbon emissions by 250,000 tonnes each year. We own 43 wastewater treatment plants, and 97% of our wastewater was treated in 2010.
There are 49 trade unions in 15 of our country operations and work councils in a further seven. Twenty countries have a safety committee with joint manage-ment and employee representation.
We also invest significantly in develop-ing our employees to their full poten-tial. Across our operations, we gained employer of choice awards in 16 coun-tries in 2010.
Internationally recognised manage-ment system standards ensure that our approach is rigorous and effective. By 2012, we aim to have certified all plants for quality, environment, health and safety, and food safety.
Fleet and Transportation
Coca-Cola Hellenic has a relatively small transportation footprint. Our plants are largely local, as are the ma-jority of our suppliers.
In 2010, the Company owned or leased 3,109 haulage and delivery trucks, 3,452 management cars and 14,696 sales and other vehicles, which con-sumed 85 million litres of fuel.
Road safety is a particular concern in our emerging and developing mar-kets, as six of our nine fatalities re-sulted from road traffic accidents.
Through our Safe and Eco-Driving pro-gramme and other initiatives, we have reduced the number of accidents and avoided 954 tonnes of CO
2 since 2009.
Our commitment to sustainability does not stop at the boundaries of our bottling plants. Today, we work to address the impacts of our business throughout our value chain from suppliers to end-consumers.To do so, we work collaboratively with our business partners, The Coca-Cola Company in particular. In addition, we contribute to broader initiatives that promote sustainable development in our communities. Much of our business is in the developing and emerging markets, where our goal is to take a leadership role.
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Sales
The greatest share of our total carbon footprint comes from the 1,508,000 coolers, vendors and fountains used to chill our beverages for immediate consumption.
Our new cold drink equipment is up to 63% more energy-efficient than in 2004 and most new models are now free of hydrofluorocarbons. By retro-fitting energy management devices to existing fleet, we are also improving the efficiency of equipment already in the marketplace.
Increasingly, we work with customers on joint sustainability projects, help-ing to educate their shoppers about recycling or healthy lifestyles. We also support small-scale entrepreneurs, helping to set up and grow distribution and retail businesses.
Consumers
We respond to the changing health and wellness needs of our consumers by offering more reduced-calorie and nutritionally enhanced beverages. We have taken a leadership role in placing front-of-pack nutritional labels and adhere to stringent codes on respon-sible sales and marketing.
More than 99% of production volume comes from operations which are ISO 9001 certified.
We also help consumers to recycle their beverage packages. In 19 coun-tries, we have led the establishment of systems which recycled or recovered 64% of packaging during 2010.
Communities
We invest significantly in our local communities, supporting environ-mental conservation and promoting sustainable development. In 2010, we invested more than €9.5 million in community programmes and part-nerships, or 1.4% of pre-tax profits.
We now have watershed protection projects in 26 countries and covering all major rivers. More than 1.2 million people participate in our sports and fitness programmes each year.
In addition to raising public awareness of sustainability challenges, we en-courage employees, local businesses and communities to participate in our initiatives.
Certifications of Bottling Plants
(% of plants certified)
ISO 9001
ISO 14001
OHSAS 18001
ISO 22000
FSSC 22000
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Our Approach
Our sustainability agenda has been, and re-mains, a journey. As a participant in the UN Global Compact, we have integrated social and environmental considerations into the way we
do business. With our commitment built into our corporate mission and operating framework, we have focused on:
• Establishing governance and management structures
• Identifying and addressing material issues
• Developing robust management systems and standards
• Monitoring progress and ensuring compliance
Now that our approach to sustainability is integrated through-out our business and we have made major progress in all fo-cus areas, we are reaching further into our value chain.
Addressing Material Issues
We focus our efforts on the greatest sustainability challenges for our business and our communities. These challenges have been identified through risk management processes, stakeholder feedback and ecological analyses of operations, products and raw materials. In this report, we discuss the seven most relevant and significant issues:
• Managing our use of water and helping to protect wa-tersheds
• Tackling energy use, reducing direct and indirect carbon emissions
• Reducing the environmental impacts of packaging
• Helping consumers lead healthy lifestyles
• Developing employees to their full potential
• Working with suppliers to address indirect impacts
• Investing in local communities
Through bold and decisive action, we aim to turn business risks into opportunities, stimulating innovation, driving cost ef-ficiencies, gaining reputation and competitive advantage.
Systems and Standards
To guide our sustainability programmes, we have built a robust framework of policies and management systems. These help to translate our commitment to the UN Global Compact into action-able requirements for our business.
The Coca-Cola Hellenic Code of Business Conduct underpins our standards and outlines the behaviour required of employ-ees and directors. Integrity is one of our Company’s core val-ues and we have a zero-tolerance of corruption and aim to comply with all applicable laws.
We have also developed a set of sustainability-related policies and standards which are periodically reviewed and updated. In addition, we help to develop industry codes and standards.
Management Systems
Our programme to certify all bottling plants to internationally recognised management system standards is nearing com-pletion. These standards include: quality (ISO 9001), environ-ment (ISO 14001), health and safety (OHSAS 18001) and food safety (ISO 22000 and FSSC 22000).
Since much of our business is in developing and emerging territories, this has been an enormous undertaking. We aim to take a leadership role and achieve full certification of all 77 bottling plants by 2012.
Governance and Management
Our sustainability agenda is driven from the top of the Com-pany. At Board level, the CSR Committee meets quarterly. The Committee approves sustainability strategy and targets and re-views actual performance. Both the Board CSR Committee and
Integrating Sustainabilitydeveloping our business in a sustainable manner is part of the corporate mission of Coca-Cola Hellenic. We must not only refresh consumers, partner with customers and reward shareholders, but do so while protecting the environment and enriching the lives of our communities.
We are on track to achieve full certification of all bottling plants by 2012.
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the Operating Committee (OpCo) are briefed on sustainability
developments, as needed, to ensure that they are kept abreast
of changing risks and opportunities.
At corporate level, the cross-functional CSR Council also
meets quarterly. The Council identifies strategic risks and op-
portunities, sets targets and reviews performance, as well as
assessing compliance. Each country operation has a manager
who oversees CSR activities, in addition to health, safety and
environmental coordinators at every bottling plant. New spe-
cialist networks across our business help to advance specific
topics, such as health and safety; water stewardship; and en-
ergy efficiency.
Corruption-related risks are the responsibility of our Internal Audit
function, which reports directly to the Audit Committee. All opera-
tions are assessed for corruption risks every two to three years,
with those in higher-risk countries audited more frequently.
The Coca-Cola System
As part of our global business system, we work closely on
sustainability programmes with The Coca-Cola Company and
other bottlers. In Europe, a joint Corporate Reputation and Sus-
tainability Board meets twice a year to approve shared goals
and review progress. To promote transparency and compara-
Standards and Policies
Issue External Standards Internal Policies
Overall UN Global Compact GRI Reporting Guidelines
Code of Business Conduct
Water Stewardship CEO Water Mandate Environmental PolicyWater Stewardship Policy
Energy and Climate Caring for ClimateGHG Protocol
Climate Change PolicyEnvironmental Policy
Packaging and Recycling UN Global Compact - EnvironmentEU Packaging Waste Directive
Packaging Waste Policy
Consumer Health ICBA GuidelinesEU Pledge & UNESDA commitments to the EU Platform
Health & Wellness PolicyQuality & Food Safety Policy StatementGMO Statement
Employee Development UN Global Compact – Human Rights, Labour, Anti-CorruptionUN Declaration of Universal Human RightsILO Codes
Human Rights PolicyEquality PolicyHealth & Safety PolicyHIV-AIDS PolicyFleet Safety Policy
Supplier Engagement UN Global Compact – Environment, Human Rights, Labour, Anti-Corruption
Supplier Guiding PrinciplesCode of Business Conduct
Community Involvement UN Global Compact – Environment, Human Rights, Labour Standards Anti-Corruption, LBG Model
Human Rights PolicyCode of Business Conduct
Anti-Corruption UN Convention against Corruption Code of Business ConductCode of EthicsCode for Dealing in SharesSupplier Guiding Principles
CEO
Group Management
Country Management
Plant Management
Board of Directors Board Committee for CSR
CSR Council
Country Managers
Plant HSE Coordinators
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Integrating Sustainability
bility, we have adopted the 2004 baseline used by the global Coca-Cola System for reporting environmental performance.
Making It Happen
To bring our sustainability commitments to life, we clearly de-fine accountability and rigorously measure and monitor our performance.
Building Accountability
Our Leadership Pipeline includes CSR as one of seven key re-sults areas in which Coca-Cola Hellenic leaders must excel to progress through leadership layers. All managers therefore have annual performance objectives related to sustainability; these help to determine career progression, as well as vari-able compensation.
Training and Awareness
All Coca-Cola Hellenic employees are trained in the Code of Business Conduct. Our various reporting channels – includ-ing a confidential hotline and email system – are widely pub-licised. We also make employees aware that if they do not report a suspected violation, they themselves violate the Code.
Our people are also trained in other aspects of sustainability,
based on their roles. Commercial employees are trained in competition law, for example, while drivers are trained in our Safe and Eco-Driving programme.
Ensuring Compliance
We regularly review our compliance with laws, regulations and internal standards.
Compliance and continuous improvement are integral to our management systems. In addition to regular internal audits, third parties verify these systems on an annual basis.
Our confidential hotline and email system are another important way to assess compliance. Concerns raised through these and other reporting channels are independently investigated, with findings reported to the Audit Committee. Violations of the Code of Business Conduct lead to disciplinary action, even dismissal.
In 2010, Coca-Cola Hellenic received no significant1 fines for non-compliance with laws and regulations.
A Culture of Sustainability
We also encourage employee involvement and feedback. To root sustainability into corporate culture, we communicate our CSR strategy and progress through our company magazine Journey and our internal TV channel.
Training in the Code of Business Conduct
A new e-Learning programme is helping to ensure that our Code of Business Conduct is understood. The programme includes a test which every employee must pass in order to become certified. Already available in 11 languages, the programme will be translated into more. during the first year, 73% of email-enabled employees completed the course and achieved certification.This new initiative complements existing training and communications. An annual letter from the Managing director to every employee reaffirms our zero-tolerance approach to corruption. In addition, we send monthly tips by email and ensure that all new recruits receive in-person training.
Third consecutive listing in DJSI
For the third consecutive year, Coca-Cola Hellenic has achieved listings on the dow Jones Sustainability Index (dJSI) and the dJSI Europe Index (STOXX). This makes us one of only four beverage producers worldwide on the 2010 dJSI World Index – one of two in the Europe Index. We are the only Greek-based company in the Index. In the face of fierce competition and ever higher standards, we must work hard to retain our listing.
1. Fines of €1 million or more are deemed significant by financial auditors.
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As we address our indirect impacts, working collaboratively
becomes even more important. Since we do not own or con-
trol these other entities, we can only achieve progress by
working together.
Our Approach
We engage with our stakeholders in a variety of ways, in-
cluding:
• Integrating sustainability into core business relationships
and day-to-day engagement
• Forming or joining strategic partnerships to address key
issues
• Mobilising others – raising awareness and encouraging
involvement
• Seeking expert input on our sustainability strategy and re-
porting
Working in Partnership
Wherever we operate, we aim to establish long-term part-
nerships with NGOs, UN agencies, government agencies and
others. From conserving watersheds to promoting healthy
lifestyles, working in partnership is central to delivering our
commitments.
Set up in 2010, the European Water Footprint Sustainability
Assessment Sounding Board for Sugar is one such initiative.
This new coalition of European sugar producers, Coca-Cola
bottlers, NGOs and academia aims to address indirect water
use in agricultural supply chain.
Our longest-standing partnership, the Green Danube,
marked its fifth anniversary in 2010. Under this umbrella,
country-level partnerships with environment ministries,
NGOs and others conserve watersheds and raise public
awareness in eight countries.
In addition, we join major partnerships and strategic initia-
tives. We were founding members of the CEO Water Man-
date and Caring for Climate and actively support 14 local
networks of the Global Compact.
Dialogue and Engagement
During 2010, we continued to deepen our collaboration with key
stakeholders on sustainability issues. More details on the part-
ners and projects below can be found in subsequent chapters.
NGOs and IGOs – Partners such as the WWF, ICPDR, Water
Footprint Network and UN agencies provide the technical
expertise for our sustainability programmes. With strong
water stewardship programmes in place, we are broaden-
ing the range of partners and issues we tackle, such as our
growing collaboration with the Red Cross.
Engaging StakeholdersEngaging with stakeholders - the people who affect our business or who are affected by it – is fundamental to our business success. Engagement is also integral to our sustainability strategy. We cannot be successful if we do not listen to others or work with them.
Groupwide Partnerships
UNGC United Nations Global Compact
CEO Water Mandate
Caring for Climate
ICPDRInternational Commission for the Protection of the Danube River
Country Partnerships
WWF World Wide Fund for Nature
IFRCInternational Federation of Red Cross and Red Crescent Societies
UNDP United Nations Development Programme
GWP Global Water Partnership
UNESCOUnited Nations Educational, Scientific and Cultural Organization
14
Engaging Stakeholders
Governments – We work in partnership with government agencies on water stewardship, packaging recovery and active lifestyle programmes in many countries. In addition, we work with industry associations to inform public policy on sustainability challenges, sharing our experiences and advancing practical solutions. We aim to be transparent about our positions – calling for urgent action on climate change; promoting integrated water resource management and championing the producer responsibility principle, for example.
Our Code of Business Conduct governs how we interact with
politicians and authorities. No political contributions were
made by Coca-Cola Hellenic in 2010.
Employees – Our overall engagement score rose 13 points
in our 2010 survey of employees. This was due to concerted
efforts to build trust and communication following previous
survey findings. As the recession continued, we tried to main-
tain jobs and minimise redundancies, keeping employees in-
formed of business developments. Volunteerism is a growing
part of engagement and in 2010, more than 6,000 employees
took part in our community projects. In 2010, Coca-Cola
Hellenic gained employer of choice awards in 16 countries.
Suppliers – To address our indirect impacts, we have
stepped up collaboration with suppliers. We have shared the
results of water footprint studies and begun discussions to
reduce water use in sugar production. Work also continues
with suppliers to develop low-carbon and resource-efficient technologies, such as our cold drink equipment and quad-generation CHP units. Our next step is to assess suppliers’ carbon reduction programmes.
During the recession, we continued to support local suppli-
ers. We commission independent audits of working condi-
tions in our supply chain.
Customers – As part of our drive to place customers at the
heart of everything we do, we are increasing collaboration with
retailers and other customers on sustainability issues. Pro-
grammes are at an early stage but we have already worked
together to raise shopper awareness of active lifestyles, pack-
aging reduction and water stewardship in several countries.
We also support independent businesses and entrepreneurs.
Consumers – To date, our greatest interaction has been in
two main areas: consumer health and recycling. We have re-
sponded to demand for more reduced-calorie and nutrition-
ally enhanced beverages; undertaken consumer research
and education about our nutritional labels; and developed
responsible marketing practices that respond to concerns of
parents and educators. We also urge consumers to recycle
their cans and bottles, providing the infrastructure and edu-
cation to help them do so.
We are expanding such interaction, integrating sustainabil-
ity into our brands and marketing programmes, such as the
award-winning Greek reforestation project of local mineral
water brand Avra.
Communities – We continued to invest significantly in com-
munity programmes throughout the recession. We also en-
gage with communities in other ways, facilitating employee
and community volunteerism in our programmes and ac-
tively supporting local networks of the Global Compact. Bot-
tling plants host visits from stakeholder groups and plant
managers are responsible for engaging with their commu-
nity on local issues.
Investors – Social and environmental performance is inte-
gral to our engagement with investors, from roadshow pre-
sentations to our Annual Report. In 2010, Coca-Cola Hellenic
was voted No.1 in the European beverage sector for investor
relations by Institutional Investor magazine.
We also engage with ratings agencies, socially responsible
investors and analysts and discuss climate risks in our sub-
mission to the Carbon Disclosure Project. The Fondation
Guilé helps to guide our sustainability strategy and reporting
by assessing how well we meet our commitments to the UN
Global Compact.
Seeking Expert Input
To inform our approach, we periodically seek input from ex-
perts on specific sustainability topics. Coca-Cola Hellenic is a
member of several sustainability working groups, including
the IMD’s Center for Corporate Sustainability Management.
In Greece, we involved consumers in our award-winning partnership to restore forests devastated by recent wildfires. Together with the environmental NGO Arcturos and retailers, we gave away saplings in return for purchases of our mineral water. More than 22,140 young trees were planted in forests and we have pledged to care for them until they take root.
15
In 2010, we hosted multi-stakeholder meetings in Hungary
and Russia on packaging and recycling; while in Greece, a
major stakeholder survey helped identify the focus for our
new community programme ‘I Care for My Health’.
Our Stakeholder Panel
At corporate level, we benefit from the insights of our annual
Stakeholder Panel. In 2010, we expanded panel membership
to include customer and supplier representatives, in addition
to NGOs, academia, investors, trade associations and CSR
specialists. Furthermore, the Panel now provides a critique
of our report which we publish unedited (see Stakeholder
Review Statement).
The Panel meeting in November 2010 generated constructive
feedback on our sustainability strategy and reporting. We also
received valuable input on our reporting from the Fondation
Guilé, GRI and CSR Europe. Key points are listed below.
Feedback from Our Stakeholder Panel
What Stakeholders Said How We Responded
Assurance – External assurance of our report would enhance its credibility
We reinstated external auditing of our sustainability reporting (see Validation Statement)
Compliance – We should describe more fully our approach to compliance
We include a separate section on compliance (see Integrating Sustainability)
Diversity – We should explain our statistics and of how we are diversity-proofing Coca-Cola Hellenic
We discuss research and projects underway to improve our Company’s diversity
Anti-corruption – Although our reporting has improved, we could provide more detail
We describe anti-corruption activities in the relevant sections of the report
Suppliers – This chapter was weaker in past reports. It needs more information
We significantly expanded this chapter and added a section on Sustainable Agriculture
Global Compact – We should publish the Ten Principles, showing how we support each
We include a table showing how we implement and promote each of the Ten Principles in our business, value chain and beyond
External commentary – A panel review of report would be more valuable than commentaries by individual experts
Our Stakeholder Panel has reviewed this report and we publish their findings unedited
In Italy, we are working with retailers to stage an interactive exhibition on recycling. More than 5,500 people have already visited the exhibit and over 4,000 copies of our children’s book on recycling have been distributed.
GREEN dANUBE PARTNERSHIPI CARE FOR MY HEALTH
The world’s available freshwater is limited and accounts for less than 1% of water on the planet. There are many competing demands on this finite yet renewable resource: safe water and sanitation; agriculture and industry, as well as the maintainance and preservation of ecosystems.
19% rise in water efficiency since 2004
3rd consecutive year we have reduced our absolute water use
Operational water footprint is 48% smaller than 2004
More than 97% of wastewater treated in 2010
WATER STEWARDSHIP
• • • • •
• • • • •
• • • • •
Water Availability in Our Watersheds
Location of bottling operations
Extreme scarcity < 500 m3/person/year
Scarcity 500-1,000 m3/person/year
Stress 1,000-1,700 m3/person/year
Sufficient 1,700-4,000 m3/person/year
Abundant > 4,000 m3/person/year
•
17
Freshwater demands increase as populations grow and be-
come more urbanised. In addition, poor or fragmented gover-
nance has led to depletion and pollution of water resources.
With climate change intensifying the problem, communities
and ecosystems suffer increasingly from water stress. Wa-
ter scarcity and declining water quality are now recognised
as strategic challenges for businesses, too.
Our Approach
Since 2003, Coca-Cola Hellenic has developed and evolved
a comprehensive approach to water stewardship. As a bev-
erage company, we anticipated the growing water-related
risks to our business and have made significant progress
in managing them effectively. The ISO 14001 certifications of
our bottling plants (now covering 97% of produced volume)
are an essential process towards eliminating risks of pollu-
tion and fostering continuous improvement.
Our water stewardship strategy focuses on:
• Ensuring the sustainability of our water extraction
• Reducing water use within operations
• Treating 100% of our wastewater
• Working with suppliers and others to reduce our indirect
water use
• Partnering with others to protect local watersheds
Our approach is underpinned by our support of the CEO Wa-
ter Mandate (assessment available online), as well as our
new water stewardship policy. Developed in 2010, this policy
recognises that safe drinking water and sanitation are basic
human needs. Although provision of water is largely a gov-
ernment responsibility, we ensure that our water use will
not negatively impact water available for the basic needs of
local communities.
In 2010, we received a special commendation for ‘Outstand-
ing and sustainable contribution to international water stew-
ardship’ at the Water Innovation Awards.
Understanding Water Risks
As a beverage manufacturer producing locally, our business
depends on the availability and quality of local freshwater
sources. Most of our bottling plants are located within river
basins which are water-abundant. Some watersheds face
water stress, like the Vistula and Dniepr river basins, while
others experience seasonal water scarcity, such as the east-
ern Mediterranean and northern Nigeria.
Since 2007, each of our bottling plants has conducted com-
prehensive assessments of local water resources, develop-
ing an in-depth understanding of their inherent risks.
Our most recent assessments of local water risk showed
that eight bottling plants are located in areas facing baseline
water stress. Approximately one-third of the water we use
is from municipal sources; the remaining two-thirds is from
our own wells. Seven plants are approaching the technical
or administrative supply limits, so that we are investigating
alternative supplies. In most countries of operation, both
public and private water supplies are strictly regulated. This
ensures that local communities are not disadvantaged by in-
dustrial water use.
Working with The Coca-Cola Company, we are developing
source water protection plans (SWPPs) for each bottling plant.
First, hydrogeology specialists help each plant complete a
Source Vulnerability Assessment. Potential risks to the quality
and quantity of local water supplies and the overall health of
the aquifer are identified. We also assess our water use vis-
Annual Water Supply Levels (Source: WBCSd Water Tool).
Water Use Ratio
(litres / lpb)
2.86 2.592.48 2.40
2.61
2.30-3%
vs 2010-40%
-19%vs 2004
Total Water Use
(billion litres)
Productionvolume
22.2
25.829.1 28.9 28
27.3
no increase
5.7 3.2
1.3
-2%vs 2004 baseline
18
à-vis the needs of other users, evaluating the plant’s engage-
ment with local stakeholders on water issues.
Following this assessment, the plant’s water resource man-
agement team develops a plan to address the critical chal-
lenges identified at catchment level, from hydrological vul-
nerabilities to local government management capacity. By
2012, all bottling plants will have developed a Source Water
Protection Plan.
Improving Our Efficiency
Coca-Cola Hellenic has improved its water use efficiency by
19% since 2004. We now use 2.3 litres of water to produce
one litre of beverage.
We have reduced our water use in absolute terms for the
third consecutive year. In 2010, Coca-Cola Hellenic’s bottling
operations used 27.3 billion litres of water.
Since we cannot reduce the water content of our beverages,
we focus on reducing and recycling water in our manufac-
turing processes. In 2010, we recycled and reused 1.2 billion
litres of water. To help plants identify opportunities, we have
conducted audits, developed toolkits and shared best prac-
tice. As a result, technologies such as dry lube, air rinsers
and recycle and reclaim loops are being implemented.
We also pilot new technologies. Using less water in clean-
ing processes is an area in which we have made particular
progress. Switching to cold Cleaning-in-Place during 2010
has yielded savings of up to 40% of water and energy while
achieving the same or better standards of cleaning.
There are two parts of our business where water use is
relatively high. In certain countries, we use refillable bot-
tles which need to be thoroughly washed before reuse.
Secondly, our aseptic production lines to produce juices
and teas without preservatives also require significantly
more water in their cleaning processes. To reduce this, we
piloted an innovative system to recover water from rinse
sections of aseptic lines. After encouraging results, we will
now move to commercial validation under normal produc-
tion conditions.
As our water-savings programmes mature, further im-
provement will require significant capital investment. We
have therefore developed a process to evaluate and priori-
tise projects by investment required and payback in terms
of water savings and return on investment. We have also
established a network of water experts across our business
to help guide the next phase of our water-savings strategy.
Treating Wastewater
In some countries, municipal facilities cannot treat our
wastewater to a level that supports aquatic life, the stan-
dard required by our business system. In 2003, we there-
fore committed to build on-site wastewater treatment plants
wherever municipal facilities were inadequate.
This major investment programme is nearing completion.
During 2010, we constructed a further three on-site waste-
water treatment plants, bringing the total to 43 across our
business. As a result, on average 97% of all wastewater in
2010 was treated, a figure which rose to 99% by year-end.
We believe this to be is an unparallelled achievement in our
territories. Nevertheless, we narrowly missed our goal of
100% wastewater treatment by 2010. In FYROM, we did not
receive planning permission to construct our final plant in
time, but construction began in early 2011 and should be
completed later in the year.
During 2010, 14,380 million litres of wastewater were re-
turned to the natural environment. Total COD discharge was
1,044 tonnes, 70% below 2003 levels.
Water Stewardship
The water ratio (relative water use, normalised for production) in bottling operations has considerably decreased due to water-saving activities.
Coca-Cola Hellenic’s absolute water use in bottling operations has increased at a lesser rate than production volume and has started to decrease. Much of the increase resulted from the acquisition of businesses and the internalisation of their water use. When correcting for this, the total 2010 water use is 2% below 2004 levels.
Wider Water Footprint of Our Supply Chain
(million m3)
Sugarwater footprint(792 million m3)
Packagingwater footprint(196 million m3)
Bottling operationswater footprint(23 million m3)
Blue water footprint
Green water footprint
Grey water footprint
Water Footprint from Bottling Operations
(million m3)
Later acquisitions blue and grey water
Blue water
Grey water
Production volume
6.9
21.1
34.921.1
15.4 13.3 12.1 9.8
9.9
12.3 15 14.2 13.813.6
-2%vs 2010
-50%vs baseline
-48%vs 2004 baseline
19
Reducing Indirect Water Use
Coca-Cola Hellenic’s operational water use is significantly
smaller than that used in its supply chain. Our wider water
footprint reveals that our indirect water use is up to 43 times
that used in our own operations. This includes water used by
agriculture to grow sugar.
Agriculture is the biggest user of freshwater resources globally,
therefore it is unsurprising that agricultural crops represent the
greatest share of our water footprint. We have started to address
this as part of broader efforts towards sustainable agriculture.
As sugar is the main agricultural commodity we use, this is our
initial focus. In Europe, we are founding members of the Eu-
ropean Water Footprint Sustainability Assessment Sounding
Board for Sugar. This brings together our business system with
the Water Footprint Network, academia and leading European
sugar companies to better understand the water footprint of the
sugar we use. We are also working on a methodology to evalu-
ate the sustainability of this water footprint in its local context.
At a global level, The Coca-Cola Company actively partici-
pates in the Better Sugarcane Initiative and the Sustainable
Agriculture Initiative (SAI) on behalf of our business system
(see Supplier Engagement).
Our Water Footprint
Coca-Cola Hellenic’s corporate water footprint represents the
freshwater consumed directly and indirectly by our business.
In 2010, this footprint was calculated to be 1,011 billion litres.
Most of this (97.7%) is due to our supply chain, agriculture in
particular, with water use by our own operations accounting
for only 2.3%.
This footprint includes the three different types of freshwater
used by our business:
• Blue water is freshwater extracted and not returned to the
watershed - the water in our products, as well as ground
or surface water used to irrigate sugar and other crops in
South European countries.
• Green water is rain water used to grow crops, especially
sugar beet, in our supply chain. In temperate climates, sugar
beet crops use no more water than natural vegetation such
as grassland, so their net green water footprint is near zero.
• Grey water is an indicator of water pollution. Our grey water
footprint has sharply declined as our programme to con-
struct wastewater treatment facilities nears completion. Fer-
tilisers and untreated wastewater in our agricultural supply
chain account for the remainder of our grey water footprint.
Water footprints have also been calculated for core products
of The Coca-Cola Company.
Community Partnerships
Beyond our value chain, Coca-Cola Hellenic actively sup-
ports community water programmes in almost every
country of operation. Since 2005, we have worked to build
long-term partnerships with NGOs, government and UN
agencies in 26 of our 28 territories. Together, we develop
programmes that benefit local ecosystems and commu-
nities: conserving local watersheds; improving access to
clean water and sanitation; and raising local awareness
and involvement. We also support initiatives that promote
an integrated approach to water resource management and
better water governance.
In absolute terms, the total water footprint of our bottling operations has decreased by 48% since 2004, although production volume has risen 58%. As the methodology was strengthened, we recalculated our baseline to a tougher standard, which results in a higher baseline than published previously.
Our own operations account for only 2.3% of our wider water footprint.
20
Water Stewardship
Watershed Protection
Rivers are a particular focus for our conservation efforts.
These vital waterways face threats ranging from excessive
water extraction and over-fishing to agricultural run-off, in-
frastructure and dams.
All major river basins in our territories are now covered
by Coca-Cola Hellenic watershed protection projects. The
most longstanding is our Green Danube partnership with the
ICPDR which in 2010 saw activities in eight countries. The
River Danube is the main source of water for millions. Our
partnership has built awareness, through extensive public
education campaigns and helped restore wetlands, provid-
ing critical habitat for flora and fauna, supporting better river
basin management.
Such water basins also offer important opportunities for in-
ternational collaboration. Our project to reduce plastic pol-
lution in the Tisza River, an important Danube tributary, has
involved collaborative activities between Ukraine, Slovakia,
Hungary and Romania.
Other conservation programmes include:
• Russia – Since 2006, our Living Volga programme part-
nership with UNESCO set up annual Volga Day celebra-
tions and riverbank clean-ups in nine major cities, Volga
art and eco-contests, environmental education for school-
children, as well as seminars on wetland biodiversity and
eco-tourism.
• Poland – Now in the fourth year of our project with WWF,
we have helped to restock the Vistula River with 1,400,000
salmon fry. The fish had been almost eliminated from the
river due to pollution, overfishing and dam construction.
• Belarus – Our partnership with local NGO partner Birdlife
Belarus has been restoring Yelnya Bog since 2007. Block-
ing the canals that artificially drain the Bog has allowed
groundwater levels to rise by a metre. As a result of this
and the cessation of forest fires, CO2 emissions from the
bog have fallen and native birds and vegetation have begun
to return.
Education and Awareness
We also build public awareness and understanding of local
water issues. High-profile annual festivals that celebrate indig-
enous rivers are a particularly successful way to demonstrate
the importance of rivers to local ecological, economic and so-
cial well-being. These events represent the annual culmination
of conservation, education and awareness-raising activities.
Danube Day is the largest river festival in the world, and
celebrated in eight countries in the region. More than 480
organisations, from NGOs to local authorities, helped to
run 140 events in 2010. These included scientific seminars,
roundtables and eco-camps, community clean-ups and tra-
ditional cultural entertainment.
Inspired by the success of Danube Day, we have launched
programmes to celebrate other rivers, including the Volga,
Dnieper, Sava, Tisza and Vistula. We continue to expand the
reach of these festivals. In Serbia alone, we extended cel-
ebrations of Danube Day to 20 towns and cities in 2010.
We also encourage communities to become actively in-
volved in conservation. As a starting point, we engage vol-
unteers from our workforce and communities in cleaning
up local watersheds. Ideally, we aim for programmes to be
community-owned.
In Poland and the Ukraine, we give grants to community
projects to rehabilitate springs and engage local commu-
nities. To date, 15 natural springs have been rehabilitated.
Similarly, our Kropla Beskidu fund in Poland gives grants to
projects that protect the local watershed.
Across the island of Ireland, more than 100 groups of volun-
teers care for rural beaches as part of the Clean Coasts initia-
tive. Our Green Coast Awards recognise their achievements
while Clean Coast Week raises public awareness.
Schools Education
Teaching young people about water sustainability is an im-
portant component of awareness-raising. In a growing num-
ber of countries, we work with government and NGO part-
ners to develop educational resources.
• The award-winning Danube Box tool-kit has now reached
more than one million schoolchildren in eight countries. It
was introduced to schools in Bulgaria and the Czech Re-
public in 2010.
In Belarus, we are helping to restore the endangered Yelnya Bog. As a result, groundwater levels have risen by one metre and forest fires have ceased.
21
The rainwater collected by the Mission Water programme in Greece will yield an estimated 650,000 litres annually - enough to meet the freshwater needs of more than 5,500 people.
Our partnership with Global Water Partnership-Mediterranean has set up 18 rainwater harvesting systems in public buildings on eight Greek islands.
ENVIRONMENTAL PARTNERSHIPSRAINWATER HARVESTING PROGRAMME
• A Volga Box has been launched in Russia, where more than 2,000 schoolchildren and students take part in the an-nual Green Team clean-up activities.
• In Nigeria, our new Water Ambassadors programme en-gages schoolchildren and communities. On World Water Day, children from 60 schools visited our plants and waste-water treatment facilities to learn about protecting water quality, the theme for 2010.
• In Italy, our children’s book, ‘The Mystery of the Disappear-ing Water’, has been used by more than 3,500 schools. The book has been turned into an award-winning film and a stage play which is touring 30 Italian cities. The book has also been translated and launched in Russia.
Water and Sanitation
Safe water and sanitation is essential to human health and development, yet one-third of the world’s population still lacks access. The problem is most acute in sub-saharan Africa.
In Nigeria, our plants provide access to potable water, bore-holes and tanks. In 2011, we will take this support to a new level, working with Coca-Cola Nigeria and WaterHealth In-ternational to deliver affordable, quality drinking water to rural and disadvantaged communities nationwide. The pro-gramme is part of the broader Replenish Africa Initiative (RAIN), a $30 million commitment by The Coca-Cola Company and others to provide more than two million people in Africa with access to clean water by 2015. In Nigeria, our local op-erations and Coca-Cola Nigeria have committed $1 million to projects in 2011 and we are studying the placement of Water
Health Centres, a network of community-owned water puri-
fication micro utilities.
We also support initiatives to improve the quality and avail-
ability of water supplies and sanitation in a number of other
developing and emerging markets.
We help address the growing problem of water scarcity in
established markets, too. In Greece, our rainwater harvest-
ing programme with Global Water Partnership-Mediterranean
has established 18 systems in schools and public buildings on
eight islands. These systems will yield an estimated 650,000
litres annually – enough to meet the freshwater needs of
more than 5,500 people. The Mission Water project won a Eu-
ropean Excellence Award in 2010.
All 13 Nigerian plants now have on-site wastewater treatment units. On World Water day 2010, children from 60 schools visited our plants to learn about protecting water quality. As part of our Water Ambassadors programme, the pupils saw our treatment facilities, met local water officials and received water treatment products for use at home.
Slovenia • You are my River • Green danube partnership
Water Stewardship Projects in 2010
Northern Ireland and The Republic of Ireland Coca-Cola Clean Coast Programme and Green Coast Awards
Switzerland Valser Water World
Nigeria • Water Ambassadors • Replenish Africa Initiative (RAIN) • Boreholes
Italy • The Mystery of • the disappearing Water • (book and touring stage play) • Otter House
Czech Republic • danube Box • Emergency potable water during 2010 floods
Austria • Green danube partnership • danube Challenge • danube Box
Serbia • Green danube partnership • danube day • danube Box • Emergency potable water during 2010 floods
Greece • Mission Water rainwater harvesting • Lake Kerkini clean-up
Slovenia • You are my River • Green danube partnership
Armenia • Every drop Matters • Clean-ups in dilijan
Green Danube Partnership Austria, Slovakia, Hungary, Croatia, Serbia, Romania, Bulgaria, Ukraine, Slovenia and Czech Republic
Central and Eastern Europe Emergency potable water provided in 7 countries following 2010 floods
Romania • Green danube partnership • Adopt a River programme • Water for Vatra dornei residents • Clean-ups in Vatra dornei • Water Education Centre
Belarus • Let’s Save Yelnya Bog • Meadow of Turov clean-up
Poland • Vistula Rivers for life • Vistula day • Kropla Beskidu Fund and Partnership
Russia • Living Volga • Volga day • Baikal Clean Shores • Green Teams • Emergency potable water during 2010 wildfires
Danube
Dniepr
Yelnya Bog
Vistula
Volga
Danube
Latvia Juglas lake-side clean-up
Lithuania Let’s do it! Clean-up of Nemunas river banks
Estonia Let’s do it! Beach clean-up
Bulgaria • Green danube partnership • My Green City • River Petrovksa clean-up • Water supplies in Kostinbrod
Bosnia • River bank clean-ups
Ukraine • Green danube partnership • danube day • Tisza River project • Green Teams
Slovakia • Green danube partnership • World Water day
Hungary • Liberty Island conservation • danube day • danube Box
Croatia • Our Beautiful Sava • danube day • Green danube partnership
Danube Sava
Leading the industry
in HFC-free refrigeration
Improved plant energy efficiency
by 23% since 2004
Constructing up to 20 CHP units,the largest energy initiative in our industry
Launched solar energy project at 5Italian plants
CO2 emissions have already started to disrupt the climate. As this
continues, hotter and drier summers are expected to dry up rivers and jeopardise harvests, leading to increased food prices and economic hardship. Milder and wetter winters will erode soil and cause floods, threatening farming communities and cities. Everybody will be affected by climate change – but the poorest people and countries will suffer the most.
ENERGY AND CLIMATE CHANGE
• • • • •
• • • • •
• • • • •
25
If we are to avoid catastrophic climate change, the earth’s tem-perature should not increase by more than 2°C. Urgent and ex-tensive action is required by all sectors to achieve this. In 2010, Coca-Cola Hellenic signed the Cancun Communiqué which calls on world leaders to redouble their efforts to achieve a climate deal and pursue an ambitious mitigation strategy.
The private sector has a vital role to play. Through innovation and long-term investments in energy efficiency and low-car-bon technologies, business must turn the climate challenge into market opportunities.
We reaffirm our commitment to transforming Coca-Cola Hellenic into a low-carbon business. Carbon management is a strategic priority for the Company and we are already see-ing business benefits resulting from ongoing investments in energy efficiency and low carbon technologies.
Understanding Our Climate Risks
Climate change presents significant risks to our business – from rising energy costs to threats to our agricultural sup-ply chain and availability of water. Through innovation and leadership, we aim to convert these risks into opportunities: cost-savings, reputation benefit and competitive advantage to name but a few (see table next page). Our report to the Carbon Disclosure Project discusses these risks and oppor-tunities in detail.
Our Approach
As we transform Coca-Cola Hellenic into a low-carbon busi-ness, we have committed to take a leadership role. Since much of our business is in developing and emerging mar-kets, we have a responsibility to promote the need for urgent climate action.
We are tackling climate change in the following ways:
• Improving our energy efficiency
• Switching to cleaner energy sources
• Working with others to reduce indirect emissions
• Developing and promoting low-carbon technologies
• Supporting climate adaptation
We aim to reduce total emissions while growing our business.
As a founding signatory of the UN Global Compact Caring for
Climate platform, we publish a self-assessment of our perfor-
mance against these requirements on our website.
In the past few years, we have come close to stabilising
direct emissions, decoupling energy use from organic
growth. Nevertheless, we must still compensate for emis-
sions associated with business acquisitions. By 2020, our
goal is to reduce emissions by 25% compared to 2004.
We also lead the European food and drink industry in de-
veloping and deploying low-carbon technologies. Coca-Cola
Hellenic was the only non-alcoholic beverage company in-
vited to showcase its CO2 reduction programme at CSR Eu-
rope’s Enterprise 2020 MarketPlace. Our innovative quad-
generation CHP programme has also been designated an
‘Official Partner’ of the EC Sustainable Energy Europe cam-
paign.
Reducing Direct Emissions
To reduce direct emissions, we are driving energy efficien-
cy throughout our business: in manufacturing processes,
equipment, buildings and fleet.
Our Carbon Footprint • Our direct emissions are largely due to manufacturing and fleet. In 2010, direct emissions were calculated to be
849,719 tonnes of CO2 a 0.6% increase compared to 2009, due to an increase in production sales volume.
• Our indirect emissions mostly result from our cold drink equipment and our packaging. These indirect emissions amounted to 5,13 million tonnes of CO
2 in 2010. This is 0.6% higher than 2009, again due to higher
production volume.
On-site Combined Heat and Power (CHP) units are now operational at four bottling plants; a further five are due to become operational in 2011.
Energy Use Ratio
(MJ / lpb)
0.73
-40%vs 2004
0.660.59 0.57 -3%
0.60 0.57
-23%vs 2004
Total Energy Use
(billion MJ)
5.9 6.3 6.80.2 0.3 7 6.6
-25%vs 2004
6.7
+4%vs 2004 baseline
0.7
Productionvolume
26
Risks and Opportunities in Our Business
Risk Opportunity
Regulatory • We are not currently exposed because our operations are not considered to be major sources of emissions.
• Future regulation may affect packaging, product delivery and distribution.
• Our investments in on-site CHP units and energy efficiency may yield increased returns as energy prices rise.
• Our new cold drink equipment prepares us for possible limitations on equipment or coolants.
Physical • Production capabilities, supply chain, consumer demand could be affected.
• Water scarcity could limit availability for our operations.
• Water stewardship programmes protect our physical and social licence to operate
Economic • Price and availability of key crops (e.g. sugar beet) could be affected
• Poor/inclement weather conditions could reduce demand for our beverages
• Our new cold drink equipment is a competitive advantage with customers tackling their own footprint.
• Warmer weather could lead to greater demand for our beverages.
Other • Lack of leadership in combatting climate change could harm our reputation.
• Helping customers and consumers reduce their own footprint and promoting our efforts could deliver reputation benefits.
Quad-Generation Power
The cornerstone of our carbon reduction strategy is our
commitment to build multiple combined heat and power
(CHP) units across our business. Representing an invest-
ment of €200 million, this is the largest energy-efficiency
initiative in the industry.
On completion, this programme will cut direct CO2 emissions
by more than 250,000 tonnes annually. By installing a CHP
unit, each bottling plant improves its carbon emissions by
40%. By using pioneering quad-generation technology to re-
cover food-grade CO2, plants can reduce emissions by up to
a further 40% (see Supplier Engagement).
To date, CHP units are operational in Hungary, Romania,
Northern Ireland and Italy. A further five are near completion
in Nigeria, Poland and Ukraine which are expected to be-
come operational in 2011. Given the scale of the programme
and the technology involved, legal hurdles and administra-
tive delays have been considerable. Nevertheless, we re-
main fully committed to this project.
Improving Energy Efficiency
We are systematically identifying and capturing opportuni-
ties to save or reuse energy in our plants. Following detailed
audits of energy use, we completed 233 energy-saving proj-
ects across 63 plants during 2010.
Energy and Climate Change
Our bottling plants are now 23% more energy-efficient due to energy-savings programmes.
Total energy use in our bottling plants has stabilised in the past three years, following a significant increase due to business acquisitions. When correcting for acquisitions, total 2010 energy use is only 4% above 2004 baseline.
Direct CO2 Emissions
(tonnes CO2)
-20%vs 2004baseline
-2%vs PY
740 785847 845
850895
+7%vs 2004 baseline
Productionvolume
CO2 Emissions from Operations (Bottling and Distribution)
Total: 849,719 tonnes
Electricity 38%
Natural gas & LPG 17 %
diesel 17%
Heating fuels 10%
Petrol 9%
Carbonation 9%
CO2 Emissions Ratio from Operations
(g CO2 / lpb)
98.7
79.5 75.3 75.2 72.4-3%
vs 2010-40%
vs 2004
71.6
-27%vs 2004
27
Initiatives range from technologies, such as CO2 evaporation,
to ensuring that basics are in place, such as insulating pipes, preventing leaks and reducing boiler temperature. Lighting and heat recovery projects were a particular focus in 2010.
We have also launched a new energy-saving software to help plants identify and prioritise further improvement, cal-culating the potential investment, energy savings and pay-back period for projects.
Energy efficiency is incorporated into building design, too. Our new automated warehouses in Ireland, Italy and Roma-nia are more efficient than traditional warehouses. These high-bay vertical warehouses occupy less space, require less light, heat and energy and reduce road transportation between production and warehousing.
Fleet and Transportation
Fleet sustainability initiatives yielded savings of 954 tonnes of CO
2 emissions in 2010 - more than 15,300 tonnes since the
programme began in 2007. Our progress was recognised with an unprecedented three awards from Fleet Europe for fleet safety, environmental performance and fleet management.
We have set a maximum fuel consumption for each vehicle, deployed route management systems, trained drivers in Safe and Eco-Driving techniques, and monitored performance monthly.
We undertake trials with alternative fuels and vehicles, but to date, these have not provided a solution for our purposes and we therefore focus on small, clean diesel cars. We aim to pur-chase the smallest possible engines and vehicles, and almost all purchases in 2010 complied with this requirement.
We work to reduce our overall transportation footprint, too. Air freight is not used for raw materials or finished products and we continue to explore switching from road to rail where feasible.
Green IT
Since 2007, our Green IT strategy has worked to change both infrastructure and mindsets and has avoided 10,368 tonnes of CO
2 emissions.
To reduce business travel, we promote audio, video and we-bex conferencing. Air travel is discouraged and an internal carbon tax on corporate flights is used to off-set resulting emissions. Consequently, we avoided at least 600 tonnes of CO
2 in 2010 1.
Other initiatives include an energy-efficient data centre and
server consolidation. As we retire IT equipment, our pur-
chasing specifications require that we deploy the most energy-
efficient devices. These infrastructure projects are now largely
complete.
The CO2 emissions ratio from our operations (bottling and transportation) is
now 27% below 2004 levels.
Total direct carbon emissions (bottling and fleet) has decreased for the third year in a row, following an increase due to business acquisitions. When accounting for these acquisitions, 2010 CO
2 emissions are above 7% higher
than 2004 levels.
1. Our conservative estimates include only 20% of all conferences and are calculated on the basis of only two people per meeting.
28
Energy and Climate Change
Switching Energy Sources
Diminishing reserves of fossil fuels mean that we must seek renewable energy sources. To increase the proportion of re-newables in our energy mix, we introduced our first solar proj-ect in 2010. In Italy, five plants now have photovoltaic rooftop panels with a total capacity of 5.2 megawatts. We plan to ex-tend this project to other Southern European countries in 2011.
All CHP units use natural gas which, although cleaner than coal or oil, is still a fossil fuel. We have explored switching to biogas, but have not yet found reliable sources of sufficient quantity in our territories.
Renewable energy accounted for 17.6% of electricity use or 6.3% of total energy consumed in 2010.
Reducing Indirect Emissions
More than two-thirds of our wider carbon footprint stems from cold drink equipment and beverage packaging. Con-sequently, this is where we concentrate efforts to reduce indirect emissions. We also continue to enhance our under-standing of indirect emissions. In 2010, the emissions as-sociated with sugar and sweeteners were calculated to be 391,000 tonnes of CO
2 or 8% of total emissions.
Cold Drink Equipment
Our carbon reduction programme for coolers and other cold drink equipment focuses on three areas: supporting the de-velopment of new coolers that do not use hydrofluorocar-bons (HFCs); improving the energy efficiency of new equip-ment; and improving energy efficiency of existing equipment. These initiatives avoided 46,843 tonnes of CO
2 in 2010 (see
Supplier Engagement).
We now own a wide range of HFC-free coolers and are on track to meet our goal that by 2015 all new equipment will be HFC-free. In addition, intelligent energy management devic-es and other energy-savings measures have made our new equipment up to 63% more energy-efficient than 2004 mod-els. During 2010, we purchased 23,400 of those new coolers, which will reduce CO
2 emissions by an annual 27,000 tonnes.
We have also started to retro-fit existing equipment with en-ergy management devices, improving its energy efficiency by up to one third. In 2010, we installed 12,500 devices which will cut CO
2 emissions by 4,300 tonnes for each remaining
year of their 10-year life-span.
Packaging
Our comprehensive packaging and recycling strategy elimi-nated an estimated 16,900 tonnes of embedded carbon in 2010 (see Packaging and Recycling & Supplier Engagement). In 2011, we will start assessing the carbon reduction pro-grammes of packaging suppliers as part of our new supplier scorecard.
Promoting Climate Action
Climate action in developing and emerging markets is par-ticularly important. Given our geographic spread, we have a responsibility to promote climate mitigation and adaptation in our territories. We therefore champion rapid and extensive action by governments, businesses and others.
At international level, we were a founding signatory of the UN Global Compact Caring for Climate initiative. During the Cancun Climate Summit in 2010, we signed two resolutions on climate action by the Consumer Goods Forum. These major initiatives pledge to mobilise our collective resources to work towards ending deforestation and to phase out the use of refrigerant gases with high global warming potential.
Her Majesty The Queen visited the new and highly energy-efficient bottling plant at Knockmore Hill, Northern Ireland. The on-site CHP unit – the fourth across our business – cuts plant CO
2 emissions by up to 66% while
supplying excess electricity to the local grid. The plant won the Sustainable Ireland 2010 Energy Efficiency Award.
We have produced communications materials to promote the low-carbon technologies that we have developed.
29
CO2 Emissions - Saving Programmes
Programme
Start of programme
(baseline)
CO2 reduced in
2010 vs 2009
(tonnes)
CO2 reduced in
2010 vs baseline
(tonnes)
Sum of CO2 reductions
cumulated each year since start of programme
(tonnes)
Energy savings activities in plants 2004 15,168 332,034 1,478,275
Combined Heat and Power 2006 7,000 25,000 89,000
Packaging reduction 2004 16,918 115,461 541,422
Corporate flights offsetting 2006 2,105 2,105 10,242
Eco-Driving 2007 7,000 7,554 15,354
Greener coolers 2008 46,843 62,746 78,650
Green IT 2007 600 3,940 10,368
Total 89,587 548,839 2,223,311
We showcased our HFC-free refrigeration to the Consumer
Goods Forum and at a leading European sustainability con-
ference with business, government and academic delegates
from across Europe.
Low-Carbon Technologies
We not only invest in low-carbon technologies but actively
promote these solutions. We mark the opening of each CHP
unit with a climate-themed event for local stakeholders,
demonstrating the technology and emphasising the need for
action.
At the commissioning of the Nogara unit in Italy in 2010,
more than 500 suppliers, customers, officials, NGOs and em-
ployees took part in events that included a roundtable with
business leaders and environmental agencies. In Northern
Ireland, the inauguration of our Knockmore Hill CHP unit by
HM the Queen generated international media coverage of
our quad-generation technology.
Shaping Behaviours
We involve consumers and communities in reducing the car-bon footprint of their beverage by encouraging them to re-cycle the container. By playing their part in closing the recy-cling loop, consumers can reduce the associated emissions by up to 8%. We therefore support recycling awareness and education campaigns, as well as anti-littering and clean-up initiatives (see Packaging and Recycling).
Supporting Adaptation
In addition to pursuing a vigorous climate mitigation strat-egy, we must prepare our business for the reality of climate change. We must also help our communities do the same.
The availability and quality of fresh water will be the main way in which climate change affects us all. Our comprehensive water stewardship strategy is therefore the most important way that we address these growing risks to our business, our communities and ecosystems (see Water Stewardship).
New Solar Programme Starts in Italy
during 2010, we installed 150,000 m2 of solar panels
on the rooftops of five Italian plants, with a capacity
of 5.2 megawatts (or 5.88 million kilowatt hours). In
our Nogara plant, this initiative, our new CHP unit and
other energy-efficiency initiatives, have already cut the
plant’s CO2 emissions by 66%.
CLIMATE CHANGE POLICYCHP PLANTSCARING FOR CLIMATE
Recycled or recovered 85% of production waste
64% of packaging waste
recovered and recycled in 19 countries
Increased the capacity of the Austrian PET-to-PET plant
Packaging plays a vital role in maintaining product quality and safety as beverages travel from production line to end-consumers. As a result, packaging contributes to overall sustainability, preventing breakage and spoilage. Nevertheless, the cans and bottles themselves account for significant environmental impacts which we work to reduce at every stage of their lifecycle, from manufacture to recycling and disposal.
Avoided 51,000 tonnes PET since 2005 through lightweighting
PACKAGING AND RECYCLING
• • • • •
• • • • •
• • • • •
Lightweighting of Packages
Average weight28 g.
Average weight18 g.1
Weight28 g.
Weight20.7 g.
2005
2010
Weight263 g.
Weight210 g.
PET 500ml (sparkling)
Glass 330ml PET 500ml(still)
61 6269 68
62
65
Packaging Material Use Ratio
(g per lpb)
+7%vs 2004
31
Our Approach
We reduce the environmental footprint of our packaging by:
• Reducing materials and energy used in the manufacture of
packaging
• Using recycled or renewable content to replace non-renew-
able material
• Championing the recovery and recycling of packages: work-
ing with others to strengthen the infrastructure and consumer
participation
In addition to reducing use of non-renewable materials, these
strategies help to drive down the carbon footprint of our pack-
ages. Our ultimate goal is to close the recycling loop, converting
used packages into new. We have committed to invest in bottle-
to-bottle recycling plants wherever environmentally and econom-
ically sustainable. We have done so in Austria, where we co-own
a plant which recycles up to 570 million PET bottles each year.
Reducing Packaging
Source reduction is the most significant way to diminish the
impact of packaging. By reducing the material content of our
packages, we reduce carbon emissions in manufacturing, as
well as subsequent transportation and recycling.
Our goal is that by 2012 we will reduce packaging used per litre
of beverage by 25% compared to 2004. In 2010, this packaging
ratio was 7% higher than in 2004 and we used 771,000 tonnes of
material, up 6.5% from last year. Much of this increase was due
to the replacement of wooden pallets used to transport cases
of beverage.
For more than a decade, we have focused on lightweighting
and all key packages now use considerably less material.
• Lighter PET bottles: During 2010, we established new bench-
marks for PET bottles. Our 500ml bottles for waters now
weigh on average 18 grammes, 36% less than in 2005; while
our 500ml bottles for carbonated beverages are 26% lighter
(see below). As a result of these efforts, we avoided the use of
more than 4,500 tonnes of PET in 2010. Since 2004 our light-
weighting efforts have resulted in PET bottles that are now on
average 16% lighter.
• Short-height plastic closures: We continue to roll out shorter
bottle closures across our business. Not only do these clo-
sures use less material, but they also allow bottle necks to
be shorter and lighter, further reducing material use. By using
these closures, we avoided 527 tonnes of material in 2010.
• Light-weight glass bottles: In 2010 we introduced 55 million
light-weight glass bottles using up to one third less material.
• Cans and cartons: Although these represent only 16% of our
primary packaging mix, we continue to work with suppliers
on sustainability projects that include lightweighting.
• Secondary packaging: We minimise our use of cardboard,
shrink film and other materials to deliver products to busi-
ness customers. Such projects benefit customers, too, reduc-
ing their packaging waste and labour costs.
We have significantly reduced the material used to produce each of our main packages.
The amount of packaging material used to manufacture our products, per litre of produced beverage, has remained broadly stable. In 2010 it was 7% above 2004.
1. Lowest achieved: 12.2 grammes.
32
Packaging and Recycling
As we seek opportunities to remove material from our pack-ages, we work within constraints. If a package is not strong enough to withstand transportation and storage, this will lead to product waste, which typically accounts for considerably higher CO
2 emissions than packaging alone. Consumer appeal is an-
other important consideration since the look, feel and conve-nience of packaging plays a significant role in brand preference and purchasing decisions.
Recycled and Renewable Content
Using recycled or renewable content is another way we lessen the impact of our packaging. These materials replace non-re-newable materials, and their production uses much less energy – 85% and 95% less for recycled PET and aluminium respec-tively. While we focus on increasing the recycled content of our packages, The Coca-Cola Company has developed packaging made with renewable raw materials, such as the PlantBottle.
Recycled PET
Aluminium cans and glass bottles contain up to 60% recycled content. By contrast, the maximum recycled content in our PET bottles was 30% in 2010. We increased the recycled PET we used in 2010 to approximately 6,500 tonnes. Nevertheless, this still represents a small proportion of total PET usage and we aim to increase this. The greatest obstacle is lack of a stable supply of recycled PET feedstock. Around half of PET bottles are recycled, of which approximately two-thirds2 are diverted into the PET fibres and sheet industry which does not demand food-grade quality standards. We must therefore enhance the efficiency of PET collection (see below) and increase our share of the recy-cled material produced. In 2010, we supported the introduction of another production line at the bottle-to-bottle recycling plant
we co-own in Austria. With access to more reprocessed PET, we aim to produce bottles with higher recycled content.
PlantBottle
In 2011, Coca-Cola Hellenic will launch PlantBottle, the award-winning PET bottle developed by The Coca-Cola Company. Up to 30% of the PET in this package is de-rived from renewable plant-based waste material. The bottle has a lower carbon footprint than traditional PET
yet maintains the same performance standards and is fully re-cyclable. Coca-Cola Hellenic will trial PlantBottle in Switzerland.
Promoting Recycling
For our packages to be recycled or recovered, we work with in-dustry and government to achieve two important pre-conditions. Firstly, we set up schemes to collect, recycle or recover pack-aging. Secondly, we encourage consumers to play their part in closing the recycling loop; otherwise empty cans and packages end up as landfill or litter, not valuable feedstock for recycling.
Recovery Organisations
In 19 countries, Coca-Cola Hellenic has led the establishment of organisations to collect, recycle and recover packaging. In turn, these bodies work with 29,000 municipalities to provide 135 mil-lion people with access to collection systems. In 2010, 64% of our packaging was recycled or recovered in these countries.
The challenge is to bring all territories up to speed, as there are still countries where collection and recycling are limited or non-existent. We promote producer responsibility schemes since they facilitate both environmental and economic progress.
During 2010, two new recovery organisations came into be-ing. In the Former Yugoslav Republic of Macedonia (FYROM), Pakomak was officially approved, starting operations in 2011. In Serbia, Sekopak completed its first year of operations. Resi-dential collection systems have been set up in 21 municipali-ties together with campaigns to teach residents how to sepa-rate waste. First-year results exceeded targets with almost nine tonnes of packaging recovered. Since some municipali-ties previously had no residential waste collection, this result is particularly encouraging.
Other progress during 2010 included:
• In Romania, we extended collection systems to include rural households. Again, this marked the first collection of waste of any kind. In 2010, 38,000 tonnes of PET were collected for recycling.
At the Pet-to-Pet Recycling plant in Muellendorf, Austria, a new processing line has been installed. The state-of-the-art recycling plant has been producing PET flakes from recycled PET bottles for many years and now using the latest technologies to turn used PET bottles into granulate.
2. PETcore.org
Landfilled Waste Ratio
(g/lpb)5.0
-90%vs baseline
-5%vs 2010
1.9
3.0 3.0 2.8
1.5
-71%vs 2004
Total Landfilled Waste
(million kg)
-80%vs 2004baseline
37.2
29.734.3 33.7
21.6
4.5
17.6
-58%vs 2004 baseline
Productionvolume
33
• In Russia, the new packaging and environment coalition Rus-PEC, chaired by Coca-Cola Hellenic, held its first multi-stake-holder conference. By bringing together government agen-cies, authorities, suppliers, manufacturers and recyclers, we developed comprehensive proposals for PET collection and recycling for submission to the Russian Parliament.
• In Hungary, we held a multi-stakeholder forum on PET pack-aging waste. This led to new projects, including a lifecycle analysis with the Ministry of Environment, on-pack labelling of recycled content and other consumer messaging.
Where recovery systems are in place, we remain actively in-volved and retain an ownership stake in 18 organisations. Dur-ing 2010, we began a new initiative to review and improve their performance. We paid almost €42 million in recovery fees in 2010.
We continue to work with government and industry to pro-mote market mechanisms, technological and sorting innova-tions and creation of equitable closed loop packaging solu-tions. At an international level, we support efforts by industry associations to work towards a global standard of producer responsibility.
Mobilising Consumers
Since consumer participation is vital to the success of recycling initiatives, we support education and awareness campaigns. We also mobilise communities to support clean-up operations and anti-littering campaigns.
To stem the growing problem of plastic pollution in the Upper Tisza river basin, we support environmental projects in Roma-nia and Ukraine. Lack of waste collection led residents to dump rubbish in rivers, floodplains or landfills. In addition to pioneer-ing rural collection, we conducted education and awareness campaigns and clean-up operations.
Even where recycling infrastructure is established, consumers often lack access when away from home. We therefore include collection schemes at all events that we support, from sports
tournaments and music festivals to product sampling. In 2010,
we collected 141 tonnes of packaging at events.
In-Plant Recycling
Our goal is that all plants will recover or recycle at least 90%
of production waste by 2015. We are on track to achieve this
with 39 plants recycling 90% of waste and a further 14 plants
achieving rates of 80%. As a result, we diverted 103,000
tonnes of waste from landfill, an absolute reduction of 58%
since 2004.
Tackling plastic waste pollution in Ukraine
In the rural community of drotyntsi, plastic waste had blocked a cross-section of the river and led to flooding. Our Green
danube partnership worked with local authorities to address the source of the problem by installing residential waste
collection and setting up a collection centre where plastic waste is compressed and baled, ready for recycling. In addition
to tackling a local environmental issue, the project has also created jobs in the collection system. A local awareness
campaign is now underway. We also organised clean-up activities along the river.
PACKAGING ANd PACKAGING WASTE POLICYPET-TO-PET RECYCLING PLANT
The amount of waste from plants that is sent to landfill, relative to the volume produced, is now 71% below 2004 levels. This results from reducing total waste and increasing recycling rates.
Total waste from bottling plants that is sent to landfill is now 58% below 2004.
Front-of-pack calorie information on allsparkling beverages labels in EU states
26% of sales volume is low-calorie
1.2 million people actively took part in our fitness programmes in 2010
Business success depends on meeting changing consumer demands. As a result, we now offer more lower-calorie options, natural ingredients and added health or wellness benefits. Consumers also want more nutritional information about their food and drink. As the recession continues, affordability is particularly important.
CONSUMER HEALTH
• • • • •
• • • • •
Growth of Still Beverages and Water
(sales volume)
2001
2010
Coca-Cola 36%
Coca-Cola low-calorie 6%
Fanta 10%
Sprite 6%
Other sparkling beverages 6%
Waters 21%
Juice drinks 9%
Sport and energy 1%
Iced teas 5%
Sparkling beverages 90%
Waters 6%
Other still beverages 4%
Average Calorie Content
(kcal/100ml)
3437
3336
32 31 30.2 29.8 30.3 30
-19%vs 2001
35
Changing demands and expectations are due in part to the in-
creasing prevalence of obesity. Already a major public health
issue in developed countries, overweight and obesity are on
the rise in developing and emerging countries, too. By 2015,
the World Health Organisation predicts that there will be 2.3 bil-
lion adults overweight - more than 700 million of them obese.
Our Approach
We respond to the changing needs of our consumers in the
following ways:
• Expanding our product range - especially reduced-calorie,
nutritionally enhanced or all-natural beverages
• Reformulating products
• Providing highly visible nutritional information on labels
• Ensuring that our sales and marketing is conducted re-
sponsibly
• Working with others to promote physical activity and
healthy lifestyles
The complexity of the obesity challenge requires the in-
volvement of all stakeholders, from governments, NGOs and
business to schools, families and individuals. Our challenge
is to enable consumers to enjoy our beverages while help-
ing them maintain a healthy weight and lead an active life-
style. Children are a particular concern.
We work closely with The Coca-Cola Company which owns
many of the brands we produce. The Coca-Cola Beverage
Institute for Health and Wellness helps our business system
by assessing wellness trends and advancing development of
new beverages. The Coca-Cola business system also sup-
ports the new European Hydration Institute. This new body
works with independent scientists, health and nutrition pro-
fessionals to build understanding of appropriate hydration.
A Wider Choice of Beverages
Our growing range of beverages includes waters, juices and
juice drinks, iced teas, ready-to-drink coffees, sports and
energy drinks in addition to sparkling soft drinks.
We are reducing the calorie content of many beverages, us-
ing natural ingredients and adding health and wellness ben-
efits. We extend these benefits to lower-income consumers,
too, with juice drinks brands such as Dobry and Su-Voce
sold in Armenia, Belarus, Russia, Ukraine, Serbia and Mon-
tenegro.
Reduced Calorie Content
Sugar gives the body energy in the form of calories – but if more calories are consumed than expended through physical activity, this can lead to weight gain. To help consumers enjoy
Low-calorie sparkling beverages, waters, juices, teas and other still beverages now account for 42% of volume.
Average calorie content has fallen 19% due to the growth of waters and reduced-calorie beverages.
Amita Ev ZynneXt
Growth of juices, teas, waters and low-calorie beverages
(million litres)
2,301
7901,108
1,569
2,894
3,695
5,0465,345 5,143 5,113
-0.6%vs 2009
36
sparkling beverages while managing their weight, we offer
low-calorie options, such as Coke Zero and Coca-Cola light.
Certain beverages have been reformulated to contain less
sugar. To allow consumer tastes to adjust, sugar content is
reduced gradually. In 2010, we eliminated a further 3-4% of
sugar from Nestea beverages, depending on the flavour. To
date, Nestea, Fanta and Sprite have been reformulated to
contain up to 20% fewer calories.
Low-calorie carbonated beverages and waters accounted for
26% of our sales volume in 2010. The average calorie content
of our products by volume has decreased 19% since 2001.
Smaller serving sizes also help consumers manage their cal-
orie intake. In some EU territories, our beverages are avail-
able in smaller 200ml bottles and 250ml cans – in addition to
250ml bottles and 330ml cans.
Nutritionally Enhanced Beverages
Our range of juices and juice drinks with added vitamins and
minerals help consumers meet their nutrition needs.
In Nigeria, 5Alive juice drinks are now enhanced with Vitamins
B1 and B2. In Russia, our Yasli-Sad juice is the only juice for
children with added calcium. In Poland, we launched Cappy
Multivitamin, as well as Amita Extra Vitamin C in Greece.
Other functional juices include benefits such as prebiotics,
fibre, omega-3, polyphenols and antioxidants.
• Greece – The Amita Ev Zyn range includes Omega-3 for
heart health; mastic for the immune system; fibre for the di-
gestive system; and calcium and Vitamin D for bone strength.
• Serbia – Expanding the neXt BodyTime functional juice
range, we launched Cardio, which is rich in natural poly-
phenols to help the cardio-vascular system.
Nutritional Information
In order to understand calorie intake, consumers need to
clearly see the energy contained in their food and drink. In the
first such global commitment in our industry, The Coca-Cola
Company pledged to place the calorie content on the front of
all packages worldwide by the end of 2011.
This builds on the front-of-pack labels in our European ter-
ritories which show the Guideline Daily Amounts (GDAs) for
calories. More detailed nutritional information can be found
on the reverse of packs.
We continue to promote consumer understanding and the use
of GDA labels. During 2010, we supported education and aware-
ness campaigns in Estonia, Poland, Bulgaria and Hungary.
In non-EU countries, we are working towards our business
system’s goal of placing calorie content on the front of all
packages. Consumers can find further information about
specific beverages, ingredients and nutritional content
through country websites and consumer response hotlines.
Consumer Health
We continue to launch new juices and juice drinks with health and wellness benefits. These range from added vitamins and minerals to antioxidants, prebiotics and natural polyphenols.
Juices, teas, waters and low-calorie beverages have become an increasingly important part of our volume, growing more than five-fold since 2001.
37
Responsible Sales and Marketing
To ensure that we market and sell our beverages in a respon-
sible manner, Coca-Cola Hellenic helps to develop and imple-
ment industry codes of practice. These include the EU Pledge
on advertising to children, as well as commitments made by
the European beverages association UNESDA. This approach
is underpinned by Global Guidelines on Marketing to Children
from the International Council of Beverages Associations (ICBA).
The underlying premise of these various codes remains the
same: we respect the authority of parents and caregivers
and do not target marketing at children under the age of 12.
Previously, this was defined as marketing communications in
which under-12s represented more than 50% of the audience.
In 2010, in consultation with UNESDA, we made this definition
more stringent, extending this prohibition to marketing com-
munications where 30% or more of the audience are under 12.
We have implemented these codes throughout our busi-
ness. Independent audits verify industry compliance with
these codes.
During 2010, Accenture assessed compliance with the EU
Pledge in six markets including three in which we operate -
Greece, Hungary and Poland. Analysis of more than 580,000
TV spots found a compliance rate of 98.9%. Similar analysis
of online advertising across nearly 50 websites aimed at un-
der-12s found just one case of non-compliance. Comparable
results were found by previous audits on behalf of UNESDA
and the ICBA.
These commitments are periodically reviewed and updated.
During 2010, the UNESDA commitments were expanded to
include digital marketing communications since new tech-
nologies now allow tangible and verifiable steps to ensure
compliance.
In 2010, our award-winning Wake Your Body programme in Hungary marked its fifth anniversary. More than 2.1 million people have taken part in 500 sports and fitness events.
Front-of-pack labelling of calorie content is being rolled out in every country of operation. Additional information on ingredients and nutritional content is printed on the back of packages.
38
UNESDA also adopted a Code for the Marketing and Label-ling of Energy Drinks in 2010. Since we recently introduced such drinks, we are implementing these commitments which include on-pack recommendations that they are con-sumed in moderation and are not suitable for children, preg-nant women and those sensitive to caffeine.
Promoting Active Lifestyles
To prevent or reduce obesity, people must not only reduce their calorie intake but also increase their levels of physi-cal activity. We therefore work with NGOs, authorities, sports and nutrition bodies to help people become more active. During 2010, more than 1.2 million people actively took part in our sports and fitness programmes.
Communities
Regardless of age or ability, we encourage people to try a wide variety of sports and make exercise part of their lives. In Hungary, our ‘Move! Wake Your Body’ programme celebrated its fifth anniversary in 2010. More than 2.1 million participants have participated in 500 recreational fitness, sports and well-ness activities. To extend its reach, the programme is working with strategic NGO and business partners, such as Tesco.
For a third consecutive year, our ‘Be Active’ programme on the island of Ireland was awarded the prestigious Big Tick Healthy Communities award from Business in the Commu-nity. Working with local sporting bodies and councils, the programme had attracted 106,000 participants to ‘Football for You’ with the Irish Football Association, as well as to many other sports.
Coca-Cola Hellenic has a longstanding commitment to foot-
ball. The tournaments we support are often the largest youth
sporting competitions in the country. In Poland alone, 3,256
teams took part in the 2010 Coca-Cola Cup, including more
than 1,100 girls’ teams. We also support running – from
competitive marathons to community fun-runs.
A newer focus for Coca-Cola Hellenic is cycling with its
dual benefit of improving physical fitness while providing
a greener form of transport. During 2010, more than 9,000
people took part in our cycling activities in Romania, Croatia,
Hungary and Serbia.
Schools
By working with government agencies, sports and nutri-
tion experts, we support healthy lifestyle programmes in
schools. These programmes teach children the role that diet
and lifestyle play in health, aiming to instil positive habits at
a formative age.
In Greece, we work with the Ministry of Health and Social
Welfare on the Moderation-Balance-Diversity programme
which integrates nutrition education and physical activity into
the school curriculum. By year-end 2010, the programme
had reached 61,500 students in 875 schools. For the third
consecutive year, the programme gained first prize at the
2010 Hellenic CSR Excellence Awards.
We also support broader industry initiatives. In Poland, the
Keep Fit partnership involved 780,000 pupils in 6,949 schools
during the 2009-2010 school year. Aimed at teenagers, the
programme emphasises personal choice and responsibility.
Surveys found that participants had more balanced diets than
Consumer Health
during 2010, more than 9,000 people took part in our cycling activities in Romania, Croatia, Hungary and Serbia.
39
those who had not participated. Almost three million students
have taken part since the programme began in 2006.
In Lithuania, we support a partnership between the food in-
dustry, NGOs and the Ministries of Healthcare and of Educa-
tion that is promoting the importance of balanced nutrition
and physical activity in schools. The project has involved
more than 11,000 children in 160 schools.
In locations where children lack a safe, fun place to be ac-
tive, we provide infrastructure. To date, we have provided
116 sports grounds and playgrounds in Russia, Ukraine, Be-
larus and Bulgaria.
Coca-Cola Hellenic encourages employees to participate in
these activities as well as organising wellness activities in
Company operations (see Employee Development).
Maintaining High Quality Standards
The quality and safety of our beverages is fundamental to
maintaining consumer and customer trust. Of our 77 plants,
75 have been certified against the ISO 9001 quality manage-
ment system standard. This represented 99.6% of produced
volume in 2010.
An early adopter of the international food safety standard
ISO 22000, we are also implementing the Food Safety Sys-
tem Certification standard FSSC 22000 following customer
requests for a system recognised by the Global Food Safety
Initiative.
We have now achieved ISO 22000 certification at 60 plants
(78% of produced volume) and FSSC 22000 certification at 32
sites (42% of volume). We expect to complete certification of
all plants within 2012.
Our ingredients and packaging come only from approved
suppliers and are tested in quality control laboratories. Fin-
ished beverages are tested in our plants and in the market-
place. If products do not meet our quality standards, they
may be removed although safe to consume.
In 2010, we worked with government agencies to resolve
two instances of non-compliance due to isolated quality in-
cidents. In Romania, a small piece of cardboard in a bottle
of mineral water led to withdrawal of that batch. In Belarus,
sales were suspended on a batch of juice after caramelisa-
tion of natural sugars due to the summer heat caused the
juice to turn brown. In both cases, we worked closely with
the authorities and independent tests gave the beverages
the all-clear. No safety risks were involved in either incident.
Consumer feedback also plays a key role in quality manage-
ment. In 2010, we decreased complaints further, receiving
only 0.28 consumer complaints per million containers sold.
Given continued concern among consumers in our territories,
we do not use ingredients that are genetically modified or de-
rived from GMOs. Our position on nanotechnology is the same.
Following our acquisition of Multon in Russia in 2005, the Schelkovo plant has gained ISO 22000 certification and consumer complaints have fallen by 46%.
Almost three million Polish teenage schoolchildren have taken part in the Keep Fit programme since it began in 2006.
OUR PROdUCT PORTFOLIOUNESdA COMMITMENTSQUALITY ANd FOOd SAFETY POLICY; GMO STATEMENTEUROPEAN HYdRATION INSTITUTEBEVERAGE INSTITUTE FOR HEALTH ANd WELLNESS
Employer of choice
awards in 16 countries in 2010
All managers assessed for CSR performance
Safety performance improved 39% since 2009
Our core values define the way that Coca-Cola Hellenic treats employees. We help our people to achieve their full potential, engaging with them openly, honestly and with respect. We are committed to providing a workplace that protects employee safety and promotes their health and well-being.
EMPLOYEE DEVELOPMENT
• • • • •
• • • • •
Employee Engagement
(% of engaged employees)
43%
56%
26%
65%
1Coca-Cola
Hellenic 2007Coca-Cola
Hellenic 2010
41
By developing a reputation as an employer of choice, Coca-Cola
Hellenic aims to attract, develop and retain the necessary tal-
ent to succeed today and in the future.
During 2010, we gained employer of choice awards in 16
countries. We were named Best Employer in Ukraine by
AON Hewitt and placed second for Best Employer in Central
and Eastern Europe 2009-10.
Employee Engagement
Throughout the recession, we have worked hard to keep
employees informed and motivated. Our 2010 engagement
survey provided valuable feedback on employee views of
Coca-Cola Hellenic as an employer and whether these had
changed since the 2007 survey.
Approximately 87% of employees participated in the survey,
up from 78% . Even more encouragingly, our overall engage-
ment score rose 13 points to 56%. This compares favourably
to the People Metrics database of approximately 50 organi-
sations, in which the median score is 48%.
To be considered engaged, employees must respond posi-
tively in three key areas: Retention (how committed they are to
staying at Coca-Cola Hellenic); Effort (how motivated they are
to go ‘the extra mile’), and Advocacy (how likely they are to rec-
ommend the Company as a great place to work). Our improved
score was largely driven by an increased rating for Retention,
although we also scored higher for Effort and Advocacy.
Increased scores across all question categories showed that
employees feel more empowered and have a greater sense of
purpose. Critical questions relating to professional growth and
performance feedback improved significantly. In addition, 80%
of employees said that they really like working for Coca-Cola
Hellenic.
There is, however, still work to do if we are to achieve the People
Metrics top performing norm of 65% engagement. Although trust
in senior management has improved, employees want their in-
put to be more considered when major decisions are made.
Despite an eight-point improvement, work-life balance re-
ceived one of the lowest scores. The roll-out of SAP has
added to the challenge because of additional training, busi-
ness trips and stretching deadlines. To help employees
manage the transition, a tailored stress management pro-
gramme was made available in the countries. We will con-
tinue to listen and respond to changing employee expecta-
tions to improve this measure.
Each business unit is now implementing action plans, with
employee focus groups providing ongoing feedback. The
next survey will be conducted in 2012.
A Safe and Healthy Workplace
Our high-profile safety programme continues to yield results.
Serious accidents again declined, a 39% reduction since the
programme began in 2009. Operations in Latvia, Lithuania
and Estonia had no lost-time accidents during 2010, while 23
countries performed better than the industry average.
Championed by our Operating Committee (OpCo), our safety
programme aims to address systemic issues and build the
foundation for a world-class safety culture. Defining ac-
countability and embedding safety into business processes
have been key to progress. Safety is now on the agenda of
every meeting of the Operating Committee; it is also built
into job descriptions and performance objectives, as well as
business planning and budget approvals.
Despite progress in 2010, we did not eliminate fatalities. Re-
grettably, nine people lost their lives, six in road traffic ac-
Our WorkforceCoca-Cola Hellenic employed 43,189 people at the end of 2010. Almost 98% of our workforce is of local origin, with more than 78% from emerging and developing economies. We are committed to developing local talent and almost 91% of our management are local nationals. Temporary labour only accounts for around 5% of positions.
Our 2010 employee survey showed a 13-point increase in engagement levels since 2007. This exceeds the median score of 50 organisations in our survey provider’s database.
1. Based on PeopleMetrics client data from around 85,000 employees across a variety of industries and regions.
42
Employee Development
cidents. Three incidents involved driver error, two unsafe behavior and one in which our driver was hit by an oncoming vehicle that had crashed through the median barrier. Two fa-talities were due to circumstances beyond our control includ-ing political violence and armed attack in Nigeria. The last fa-tality was as the result of the collapse of warehouse racking.
No fatal accident or injury is acceptable to Coca-Cola Hellenic. In-depth investigations are conducted; country General Man-agers present and discuss findings with OpCo; and lessons learned are shared across our business. To learn why un-safe behaviours persist, we will audit compliance with our Fleet Safety Policy. We are also trialling the active fleet safety device Mobileye which alerts drivers to risky behaviours, such as tailgating. Where vehicles are equipped with GPS systems, we will monitor results centrally.
In 2010, we enhanced the practical skills of frontline manag-
ers and supervisors. We ran 33 two-day workshops helping
almost 750 participants develop action plans. These include
‘Toolbox Talks’, short but regular team discussions about lo-
cal safety issues, and ‘Walk the Talk’, whereby managers
observe safety practices in day-to-day activities and discuss
improvement opportunities. We will actively promote the
value of ‘Near-Miss’ incident reporting.
In addition to internal communications and engagement, we
share our performance externally. Large notice boards out-
side each plant now display site safety performance.
We have made good progress in our OHSAS 18001 pro-
gramme, with 65 plants (84%) now certified. By year-end 2012,
our goal is to certify all plants. Our progress received recogni-
tion with the 2010 Fleet Safety Award from Fleet Europe. The
campaign ‘Safety is My Responsibility too’ received the Serbi-
an Association for Public Relations award for the second year.
Health and Wellbeing
We promote healthy, active lifestyles among our employees.
Preventative programmes include cholesterol and blood
pressure monitoring; flu vaccinations; diabetes and cancer
screening; and free on-site medical consultations. More than
20,000 employees in 22 countries have benefited from such
programmes.
During 2010, we also staged health and wellness events in 17
countries, ranging from sports and fitness events, education
sessions, nutrition advice and lifestyle consultations. In Bul-
garia, we launched a new programme to promote healthy and
active lifestyles with tips, contests and personal consultations
with health and wellness experts. In Serbia, more than 1,200
employees and family members received advice from external
experts during an open day. In Austria, we have now set up
monthly Active Days, with 650 participants during 2010. In Swit-
Fatalities (Employees and Contractors)
Incidence Rate Sickness AverageSickness Days
(including to/from work accidents)
(excluding to/from work accidents)
(number of accidents with >1 day absence per 100 employees)
(absence days)(per FTE)
2004 14 7 3.6 215,786 5.86
2005 18 9 2.9 220,608 5.75
2006 23 17 3.5 196,221 4.85
2007 15 13 2.4 231,210 5.34
2008 28 25 3.8 282,309 5.75
2009 5 5 1.4 262,537 5.76
2010 9 9 1.1 233,898 5.36
Each plant communicates its safety performance with new notice boards prominently displayed outside each site.
43
zerland, smoking cessation courses for employees and their partners helped 44 people stop smoking, 57% of attendees.
Other programmes respond to local risks. In Nigeria, we support the Roll Back Malaria partnership, providing insec-ticide-treated nets to employees, their families and com-munities. As part of our HIV/AIDS programme, over 1,000 Nigerian employees have chosen to be tested, while infected employees and their dependents can receive free anti-ret-roviral treatment. Education programmes continue in Rus-sia, Armenia, Estonia, Poland and Bosnia, where awareness remains relatively low.
People Development
We are committed to helping employees realise their poten-tial through training and development opportunities. Another critical challenge is to create a pipeline of talented future leaders for our business.
Leadership Pipeline
Given the complex challenges facing businesses today, we have defined seven core areas in which our leaders must excel. These include not only Business & Financial Results, but also Management, People Development, Leadership, Relationships, Growth & Innovation and CSR.
For each of these areas, we have identified the skills, knowl-edge and experience required at every layer of leadership. This matrix forms the basis of our recruitment; performance management system; training and development; assessment and rewards.
Annual People Development Forums in each country ensure that we have the necessary talent to fill key capabilities and projects, as well as succession plans to ensure business continuity.
From team leader upwards, all employees create their own development plan. We are also rolling out a new career plan-ning framework which identifies the performance standards and critical experiences required for career development.
Career planning is not limited to management. The newly launched Operators Development Programme defines a clear career path in manufacturing roles. From entry level operator to team leader, the programme provides recogni-tion and reward for developing new skills.
Training and Development
Despite the recession, Coca-Cola Hellenic continues to in-crease training opportunities. Employees received on aver-age 21 hours of formal training in 2010, compared to 20 in
2009. This increase was made possible by in-house train-
ing capabilities which deliver accredited programmes from
AGORA, our Learning Centre of Excellence. By year-end
2010, 72% of frontline managers had participated in our core
leadership training programme, ‘Passion 2 Lead’. The newly
launched ‘Leadership Excellence’ programme reached al-
most 35% of the target population.
We also continue to develop coaching skills within our
Company. By year-end 2010, 63 managers had been exter-
nally certified as coaches. Almost 300 more managers have
participated in our programme on developing a coaching
leadership style.
Equality and Diversity
To build a pipeline of future leaders, Coca-Cola Hellenic
must draw from the widest pool of talent available. A di-
verse workforce also helps us to mirror the diversity of our
consumers and customers. More than 70 nationalities were
represented in our workforce in 2010. Six nationalities are
represented on our Board of Directors; OpCo members are
also drawn from six different countries.
We are committed to developing local leaders in every coun-
try and 91% of senior leadership positions are occupied by
people of local origin. Since we also offer international de-
velopment opportunities for high-potential employees, 53%
of our expatriate managers are from emerging and develop-
ing economies.
In 2010, 24% of managers were female. At all levels and in
all functions, we are working towards a better gender bal-
ance. We undertook studies and focus groups during 2010
to explore why women are less well represented in our
business and how we should remedy this. In particular, we
tasked participants in our Excel leadership programme for
during our first Active Week, 300 Austrian employees tried a range of new sports and learned simple exercises. Based on the success of Active Week, we have set up monthly activities and 650 employees took part during 2010.
44
Employee Development
high-performers to study female under-representation in our Russian business and we await their recommendations.
Women are also under-represented in Commercial functions in many countries. New recruitment strategies that target women are being piloted. In Switzerland, we are trialling tes-timonials from female market developers; gender-balanced interview panels; advertising in women’s media and align-ment workshops with commercial managers. In Serbia, 26% of new hires in 2010 were female, an increase from 6% in 2009. This was the result of workshops with the commercial management team and a gender balance objective for the recruitment manager. During 2011, learnings will be shared across our business and targets set for female representa-tion. There were no women on our Board in 2011.
Despite under-representation, female employees earn es-sentially the same salary (within 2%) as men at the same job grade. At Coca-Cola Hellenic, merit is the sole criterion for selection, promotion and remuneration. Gender and other diversity indicators play no role.
There were no breaches of our Equality Policy or related legislation in 2010.
A Fair and Ethical Workplace
Internationally recognised labour and human rights standards underpin our commitment to providing a fair workplace. Our Code of Business Conduct describes our zero-tolerance ap-proach to corruption (see Integrating Sustainability).
Human Rights
Our policy clearly prohibits child labour and recruitment proce-dures verify that prospective employees are of legal working age.
There can be potential conflict in countries where human rights are compromised. We keep abreast of issues, using such resources as Amnesty International, and ensure that
education on human rights and equality are integrated into management training programmes.
In addition to annual self-assessment, our operations are inde-pendently audited. To date, 27 (35%) plants have been subject to independent workplace accountability audits. During 2010, audits of two Nigerian plants found non-compliance issues re-lated to overtime, payment procedures, excess overtime and health and safety issues. These findings are being addressed through corrective actions and both plants will be re-audited.
Various reporting mechanisms, such as a confidential tele-phone hotline and email address, allow employees to raise concerns. All contacts are investigated at the appropriate level, with results reported to the Audit Committee of the Board. We are committed to protect from retaliation employ-ees who raise concerns in good faith.
In 2010, there were no breaches of human rights policy or related legislation.
Employee Relations
We respect the rights of employees to join or not to join unions or works councils. Almost half (48%) of employees are covered by collective bargaining agreements and 27% belong to independent trade unions.
There are 49 independent trade unions in 15 of our countries of operation, with works councils in a further seven countries. In all cases, a formal communications protocol ensures regular and open dialogue and consultation. During 2010, we agreed a new protocol with the secretary of the European Works Coun-cil (EWC), increasing the frequency of meetings and available external expert consultancy days. Both measures exceed the requirements of the EWC directive and our agreement.
In five countries, representing 7% of our workforce, there are neither unions nor works councils: Moldova, Armenia, Be-larus, FYROM and Hungary. In these countries, we consult and communicate directly with employees. Independent au-
Workforce Breakdown
Managers Non-Managers Total (2010) Total (2009)
Total 3,145 40,044 43,189 44,800
Male 75.7% 75.0% 75.0% 79.2%
Female 24.3% 25.0% 25.0% 20.8%
Nationals 91.3% 98.3% 97.8% 98.5%
Non-nationals 8.7% 1.7% 2.2% 1.5%
Under 30 3.0% 35.0% 33.0% 33.8%
30-50 90.0% 57.0% 59.0% 58.0%
Over 50 7.0% 8.0% 8.0% 8.2%
45
dits in such countries have not revealed issues of concern.
In all of these countries, except FYROM, employee engage-
ment scores improved in 2010, with Armenian operations
gaining the second highest score after Greece. Furthermore,
Belarus, Moldova and Hungary were among the countries in
which we gained employer of choice awards in 2010.
Responsible Restructuring
Throughout the recession, we minimised job losses by mak-
ing other cost reductions associated with human resources.
Management salaries were frozen, company cars were not
renewed and non-essential travel and events were can-
celled. We also instituted a freeze on new positions and fur-
ther reduced temporary labour.
Despite this, 1,306 people were made redundant across 16
countries in 2010. In such cases, we aim to treat affected
employees fairly and with respect. We consult with unions,
works councils and, where appropriate, the Select Commit-
tee of the EWC. We also help employees with CV prepara-
tion, training and outplacement advice. Comprehensive
severance packages meet and, in the majority of cases, sub-
stantially exceed statutory requirements.
In 2010, we closed our plant in Estonia, a country with some
of the highest unemployment levels in Europe. By provid-
ing outplacement support, approaching local employers and
circulating CVs, we secured alternative employment for 40%
of affected employees.
Aside from some sporadic and short-lived industrial action
in Italy and Greece, restructuring in 2010 took place without
incident. Working time lost due to industrial disputes and
strikes was insignificant.
Rewarding Performance
Coca-Cola Hellenic aims to reward employees fairly and competitively. We benchmark compensation packages against leading companies. Even entry-level employees are paid on average 50% more than the local minimum wage, where one exists.
Variable compensation rewards not only financial perfor-mance but all seven key results areas, including CSR, people development and innovation.
We are also committed to providing employees with pension and retirement provisions that are sustainable, competitive and appropriate for the long-term.
In 2010, Coca-Cola Hellenic paid €1,163 million in salaries and benefits. A breakdown of costs and pension plans can be found in the Annual Report and Accounts.
Building Trust and Two-Way Communication in Greece
In Greece, employee engagement rose to 78% in 2010 – from 46% in 2007 – due to a three-year programme to build
trust, transparency and equality in the workplace. developing effective two-way communication and involving
employees in decision-making have been particularly important. More than 20% of the workforce took part in focus
groups to determine action plans in response to previous survey findings. Over the following two years, 890 interviews
with individual employees helped to refine programmes underway. In addition, employees can put forward ideas to
drive innovation. Each year, the top 10 ideas receive awards, with the best adopted by the business. In 2010, the Greek
operation was voted the winner of the Best Place to Work for the second consecutive year in the annual survey by the
Great Place to Work Institute Hellas, as well as the sixth best place to work in Europe.
In Italy, our road safety awareness programme is the first to be endorsed by the State Traffic Police and Italian Association for Road Traffic Safety. Police representatives conduct sessions for employees about driving responsibly and feature in our Safe and Eco-driving video which has been distributed to all employees in Italy.
HEALTH ANd SAFETY POLICYFLEET SAFETY POLICYEQUALITY POLICYHUMAN RIGHTS POLICY
121 supplier sites audited to datefor workplace conditions
Developed innovative low-carbon technologies with suppliers
The supply chain accounts for far greater sustainability impacts than our own operations. Agriculture represents the largest part of our total water footprint; whereas cold drink equipment and packaging together represent three-quarters of total carbon emissions. Furthermore, Coca-Cola Hellenic supports many times more livelihoods in its supply chain than within its own operations.
SUPPLIER ENGAGEMENT
• • • • •
Cold drink equipment 41%
Raw materials 37%
Bottling plants 13%
distribution 7%
Post-consumer waste 2%
47
Environmental Impacts in Our Value Chain
Bottling plants account for only 13% of our total
environmental impacts. By contrast, packaging,
agricultural crops and cold drink equipment represent
more than three-quarters. Coca-Cola Hellenic
calculates its broader ecological footprint using the
eco-indicator 99 method.
The way that we manage and develop our supply chain
has potentially far more impact than sustainability pro-
grammes in our own business.
With a total supplier spend of €4,029 million in 2010,
Coca-Cola Hellenic has significant influence with its sup-
pliers. Since the Coca-Cola global business system is one of
the world’s top purchasers of sugar, citrus, tea and coffee,
we have an even greater responsibility to address the social,
environmental and social challenges in the supply chain.
The sustainability of our supply chain is also critical to
future business growth. This is particularly true of agri-
cultural raw materials; ensuring the security of sugar and
fruit juice supplies are core business issues.
Our Approach
Addressing the environmental, social and economic chal-
lenges posed by our supply chain is an enormous task.
We therefore take a phased approach, tackling the most
significant impacts and risks first. Our primary efforts are
focused on:
• Working with NGOs and suppliers to enhance under-
standing of indirect impacts
• Reducing water use in our agricultural supply chain
• Developing low-carbon technologies with equipment
suppliers
• Reducing impacts in the packaging supply chain and
closing the recycling loop
Sustainability criteria have already been incorporated into
purchasing specifications - from coolers and packaging
to vehicles and IT equipment. We are expanding this to
evaluate suppliers themselves on their overall sustain-
ability strategy. In 2011, we pilot a new scorecard in which
sustainability criteria will account for up to 30% of a sup-
plier’s total score.
Supply Chain FootprintCoca-Cola Hellenic sources ingredients, packaging and capital equipment from approximately 84,000 suppliers. The main suppliers are sugar refiners and manufacturers of PET preforms, glass bottles, cans and coolers.
By working with suppliers, we can include recycled content into our PET bottles as well as reducing their weight by an average of 16%.
48
Supplier Engagement
In addition to addressing environmental issues, we aim to improve economic and social conditions in our supply chain – for the suppliers who work with us, their employ-ees and local communities. We do so by:
• Making clear the workplace practices we require of suppliers and assessing their compliance
• Sourcing locally to benefit both our communities and our business
Agriculture and Water Use
The main agricultural raw materials sourced by Coca-Cola Hellenic include sugar and, to a lesser extent, fruit juice. Although we do not source directly from farmers but from
sugar refiners and juice suppliers, we have a clear re-
sponsibility to help manage the manifold sustainability is-
sues in this sector.
Our first priority is to work with the agricultural supply
chain to conserve water availability and quality. Agricul-
ture is the single biggest user of water worldwide, with
almost 70% of the world’s surface water supplies used for
farming. In our business, agriculture accounts for 78% of
the water footprint.
Ensuring security of supply is another priority. With the
world’s population expected to reach nine billion by 2050,
production of food must double in the next 40 years.
Other sustainability challenges in the agricultural supply
chain include protecting soil fertility and biodiversity and
supporting the livelihoods of farmers and farm workers.
The Coca-Cola Company engages on behalf of our busi-
ness system to support the development of international
standards for sustainable agriculture, which we will sub-
sequently adopt. The Coca-Cola Company is also develop-
ing sustainable agriculture criteria as part of the system’s
long-term ingredient sourcing plans.
Reducing Water in Sugar Production
Of the sugar used by Coca-Cola Hellenic, 53% is local beet
sugar, 33% is imported cane sugar and the remainder is
high fructose syrup. As EU sugar reform continues to lead
to more efficient and sustainable sugar production, we
work with local suppliers to increase the proportion of Through a variety of channels, we promote the benefits of climate-friendly refrigeration.
By working together with key suppliers, we have developed coolers that use natural refrigerant gases instead of hydrofluorocarbons (HFCs), which have an extremely high global warming potential.
49
local beet sugar used and to reduce its environmental im-pacts. At a global level, The Coca-Cola Company works on behalf of our business system to address sustainability in cane sugar production.
In Europe, we are founding members of the European Wa-ter Footprint Sustainability Assessment Sounding Board for Sugar. Set up in 2010, this new body has brought to-gether our business system with leading European sugar companies, academia, NGOs, and the Water Footprint Net-work for the first time to collaboratively work on under-standing the impacts of water use. The Board has already analysed the water footprint of the sugar produced in sev-eral European countries. We have also begun collabora-tion to evaluate the sustainability of this water use in its local context.
Developing Low-Carbon Technologies
The greatest part of our carbon footprint lies in our value chain – mainly in the use of coolers and the manufacture of packaging. We therefore challenge these suppliers to develop new technologies that are increasingly efficient in terms of energy and resources. By supporting our sup-pliers, we help to make these technologies a commercial reality.
Climate-Friendly Refrigeration
By partnering with suppliers in recent years, Coca-Cola Hellenic has helped bring about a step-change in cold drink equipment. This includes developing a complete range of coolers that are free of hydrofluorocarbons (HFCs) and use natural refrigerant gases, which have a significantly lower global warming potential. We believe that we own one of the largest fleet of HFC-free equip-ment in the marketplace and we are on track to meet our goal that by 2015 all new equipment will be HFC-free.
Equally and importantly, this new equipment is now more energy-efficient, has better insulation and uses LED light-ing. We also worked with suppliers to develop an energy management device, the Eco Box, which improves the en-ergy-efficiency of coolers by around one-third. As a result of all these developments, new coolers are now up to 63% more energy-efficient than in 2004.
Quad-Generation CHP Technology
Working with ContourGlobal, we have pioneered quad-generation technology in a programme to build Combined Heat and Power (CHP) units across our business. Not only do these on-site CHP units provide our bottling plants with
power, heating and cooling, but we also purify CO2 emis-
sions to the highest food-grade so that they can be used
in carbonation. By using this quad-generation technology,
our CHP units are more than 60% less CO2 intensive than
traditional power plants.
The CHP units produce excess electricity which is pro-
vided to the national grid in each country. In addition, CHP
units in Romania, Ireland and Italy also produce surplus
CO2. In Ireland, we now supply our former supplier –
meeting the needs of their Irish customers.
Packaging – Closing the Recycling Loop
Packaging accounts for 40% of our carbon footprint and
we work with suppliers to lessen these impacts. We re-
duce material used in packages, increase the proportion
of recycled and renewable content and help to increase
recycling rates in the marketplace. Since closing the re-
cycling loop is our end-goal, we also work to increase the
recyclate available to our packaging suppliers (see Pack-
aging and Recycling).
Upholding Workplace Rights
Coca-Cola Hellenic requires suppliers to comply with
its Supplier Guiding Principles (SGPs). These principles
make clear our system’s basic requirements with re-
gard to human rights, labour rights and ethical business
in supplier workplaces. In particular, the SGPs explicitly
prohibit child labour and forced labour.
By recovering heat energy, CHP units provide power, heating and cooling. Innovative quad-generation technology also allows recovery of CO
2 for commercial use. As a result, the CHP units are more than 60%
less CO2 intensive than traditional power plants.
50
We assess how our suppliers meet these expectations,
commissioning independent audits as part of a joint pro-
gramme with The Coca-Cola Company. In 2010, a further
61 sites in our territories were assessed. Since the pro-
gramme began in 2007, 121 sites have been audited, in-
cluding major suppliers of sugar, primary packaging and
equipment. Other suppliers have been screened by dif-
ferent programmes. Higher-risk items (such as promo-
tional and marketing materials) and higher risk markets
(such as China or India) have been subject to a separate
audit programme by The Coca-Cola Company. In addition,
our business system has begun to accept audits con-
ducted on behalf of other AIM-PROGRESS members (see
below).
Thirty-five of the 61 sites assessed in 2010 were fully
compliant; there were minor non-compliance issues at 13
sites and moderate issues at a further 13 sites. Findings
mostly involved relatively minor health and safety issues,
such as first aid kits. There were also four instances of
excess overtime and working hours. We will work with
these sites on corrective action and follow-up audits will
take place for the higher-risk sites. In 2010, re-audits took
place at two sites – a sugar supplier and a manufacturer
of plastic closures. Following corrective action, both sites
achieved full compliance. No critical non-compliance is-
sues were found in supplier audits during 2010.
An Industry Platform
Since the underlying goal of our SGP programme is to
achieve meaningful progress in overall supply chain per-
formance, we believe that industry-wide standards are
the most effective way to do so.
On behalf of our system, The Coca-Cola Company actively
supports AIM-PROGRESS, an industry forum to promote
responsible and sustainable sourcing. As a first step to-
wards industry standards, member companies agreed
to accept supplier assessments undertaken on behalf of
other members. As part of this process, the Coca-Cola
business system accepted 175 audits of suppliers under-
taken on behalf of AIM-PROGRESS members during 2010.
Bringing Economic Benefit
Coca-Cola Hellenic aims to source as close to the Company’s
bottling plants as possible. This is not only most cost-ef-
ficient for our business, but also brings economic benefit
to local communities and reduces the environmental im-
pacts of transportation. As a result, almost 90% of supplier
payments remain within our territories.
Throughout the recession, we have supported suppliers.
We actively develop new suppliers, and support invest-
ment in our territories by international suppliers.
In 2010, our operations in Bosnia signed a supplier agree-
ment with the new STUDEN-AGRANA sugar refinery, the
first in the country. Technical support from The Coca-Cola
Company and STUDEN-AGRANA helped the supplier
reach our system’s quality standards. As the country’s
largest industrial user of sugar, we purchased 3,000
tonnes of sugar from the refinery during its first year and
have agreed terms for future purchases. The new refinery
employs 150 people and represents an investment of ap-
proximately €45 million, one of the largest food industry
projects in Bosnia in recent years.
In 2010, our packaging supplier Crown opened the first
beverage can manufacturing plant in Slovakia. With a sec-
ond line installed in 2011, the plant will have an annual
capacity of 1.6 billion beverage cans. We have signed a
long-term contract with the new plant and expect to pur-
chase at least 50% of their total capacity.
In Russia, we continue to work with the growing sugar indus-
try to maximise our use of local beet sugar (see opposite).
More than half of the sugar we use is from local beet and we work with suppliers to increase this while reducing its environmental impacts.
Supplier Engagement
51
Supporting the Russian Beet Sugar Industry
We are working with the Russian beet sugar industry
to replace as much imported cane sugar with local
beet sugar as possible. Local production has grown
in recent years, but still accounts for only about half
of the country’s annual demand. As a result, Russia is
the largest sugar importer in the world.
In early 2011 we signed an agreement to progressively
increase the proportion of local beet sugar. Whether
our suppliers are able to provide the quantities we
intend to purchase remains to be seen, especially after
a drought led to a drop in beet production in 2010.
Our Bosnian operations have signed a supplier agreement with the new STUdEN-AGRANA sugar refinery, the first in the country.
COCA-COLA HELLENIC SUPPLIER GUIdING PRINCIPLESTCCC’S SUPPLIER GUIdING PRINCIPLES
More than 1.2 million participantsin our sports and fitness activities
Invested €9.5 million in
community projects or 1.4%pre-tax profit
6,000 employee volunteers supported Company projects
Improving the quality of life in communities is enshrined in our corporate mission. Coca-Cola Hellenic is dependent on the development and sustainability of communities. By supporting them we ensure the future of our own business, too.
COMMUNITY INVOLVEMENT
• • • • •
• • • • •
Focus of Community Investment
Environment and water 31%
Sports and physical activity 24%
Youth development 13%
disaster relief 1%
Other 31%
Type of Contribution
Community investment 81%
Commercial initiatives 12%
Charitable gifts 7%
53
Coca-Cola Hellenic operates in many developing and emerg-ing markets, and has the opportunity – and responsibility - to contribute to their sustainable development.
Our Approach
Coca-Cola Hellenic aims to support local communities through both core business activities and community investment pro-grammes. We:
• Leverage core business activities that generate local eco-nomic benefit
• Develop community programmes that tackle locally relevant issues
• Work in long-term partnerships that deliver measurable results
• Encourage the participation of employees, communities and others
Creating Economic Benefit
Our business model delivers local economic benefit. Across 28 countries, our operations employ 43,189 people. In addition to manufacturing locally, the vast majority of our supplier spend is local. During 2010, we supported the establishment of the first sugar refinery in Bosnia and a can manufacturer in Slova-kia (see Supplier Engagement).
In addition to the significant tax payments we make, our busi-ness promotes the transfer of technology, skills and knowl-edge which are especially important in developing and emerg-ing markets.
Supporting Our Value Chain
Our business supports employment in the value chain for up to 10 times1, the number of our direct employees. In a number of countries, we have launched projects that boost this indirect economic benefit while delivering innovative solutions for our business.
In Nigeria, we have set up 381 small businesses to distribute products in communities less easily reached by traditional dis-tribution. More than 85% of these business owners are women. In just two years, this innovative route to market has led to a 300% increase in daily sales in this channel.
We also provide support to independent stores and kiosks since they typically lack the business and marketing expertise of international chains. In Poland, 2,228 stores and outlets have participated in our business skills development programme. In
the Czech Republic and Slovakia, the Model Store Programme
has helped 1,023 customers remodel their premises and be-
come more profitable.
Community Investment Programmes
We invest in community projects in every country of operation.
Although each programme responds to local needs, there are
four priority areas of focus:
• Water and environmental protection
• Sports and physical activity
• Youth development
• Emergency relief
The bulk (69%) of our investment is channelled into these four
areas, but our operations also support programmes that ad-
dress important local needs.
1. According to previous economic impact studies.
54
Community Involvement
Working in Partnership
We work in public-private partnerships with leading NGOs,
government agencies and others to ensure our community
investment is most effective. Our focus is on creating long-
term relationships and programmes that deliver measurable
benefit. Since 2005, our partnership with the International
Commission for the Protection of the Danube River (ICPDR)
has led to significant projects to create awareness about the
value of water, build educational initiatives that have reached
millions of people (see Water Stewardship) and restore and
conserve the Danube watershed.
We are stepping up collaboration with the International Fed-
eration of Red Cross and Red Crescent Societies (IFRC), the
world’s largest humanitarian organisation. During 2010, we
collaborated on projects in nine countries. In addition to di-
saster relief in Eastern Europe, we launched a new joint
programme in Greece (see opposite) to provide preventative
healthcare and health education to remote communities. We
also signed a three-year partnership with the Austrian Red
Cross and are a long-time supporter of the campaign to rid
Bosnia of landmines by 2019.
These efforts are supported by a new global partnership be-
tween The Coca-Cola Company and the IFRC to enhance col-
laboration on disaster preparedness and response around
the world. The partnership aims to use the capabilities and expertise of bottlers, such as Coca-Cola Hellenic, to maximise the speed and effectiveness of disaster response while rais-ing awareness of disaster prevention and preparedness and activities of the Red Cross Red Crescent.
Maintaining Support
During 2010, we contributed more than €9.5 million to our community programmes. This investment is calculated using the widely recognised ‘London Benchmarking Group
(LBG) model’. Although less than the previous year, investment represented 1.4% of pre-tax profits in 2010 and is in line with other leading LBG members.
In addition to financial support, we contribute other resources. Using our marketing skills, we raise awareness of issues and encourage involvement.
Promoting employee volunteerism is another way that we en-gage and support communities. We have set up volunteering schemes in 22 countries and more than 6,000 employees took part in 2010. Activities ranged from regular engagement with chil-dren’s homes to environmental clean-ups and emergency relief.
Water and the Environment
Coca-Cola Hellenic supports community water projects in 26 countries. These range from conserving watersheds and im-proving access to water and sanitation to awareness raising and education (see Water Stewardship).
Youth Development
From encouraging the development of future leaders to sup-porting at-risk young people, we help young people achieve their potential and contribute to society.
In Nigeria, we support local government initiatives to strength-en the educational infrastructure. In 2010, we helped renovate two schools close to our plants in Lagos and aim to extend this activity in other areas. We help refurbish schools in five other countries, too.
By partnering with leading youth organisations, we foster lead-ership, entrepreneurship and advocacy. We work with Junior Achievement, SIFE and AIESEC in 13 countries. In Serbia, we re-ceived special recognition from AIESEC in 2010 for our contribution to their platform ‘Responsible young people - a sustainable future’.
Given the high number of children in care in our territories, we support children’s homes in 17 countries. In the Czech Re-
Programmes National Partners
Watershed protection
ICPDR, UNESCO, UNDP, WWF, local NGOs, environment ministries
Youth development
AIESEC 2, Junior Achievement, SOS Kinderdorf, local NGOs
Sports and fitness
Sports associations, education ministries
disaster relief Red Cross, emergency services
Our Nigerian operations have renovated two schools in Lagos and plan to help schools in other areas, too. They were awarded the Lagos State Government CSR award in 2010.
2. Association Internationale des Étudiants en Sciences Économiques et Commerciales.
55
public alone, we support 10 care homes. We also support the growth of SOS Children’s Villages, the world’s largest orphan and abandoned children’s charity, which offers children a fam-ily-centred upbringing.
In Russia, we have promoted awareness of adoption. In 2010, we supported Gallery of Hearts, a photographic exhibition in six cities which was visited by more than 700,000 people. This led to increased interest in adoption in all cities visited. Almost 10% of children whose portraits featured have since been adopted.
We offer career guidance, that support at-risk children’s transi-tion to independence. In Bulgaria, we extended our long-term involvement with children in a local care home to help high school leavers. Similarly, in the Republic of Ireland, we sup-port the Schools Business Partnership, helping underprivileged students prepare for work. Our employees give advice on job applications and hold mock interviews.
Sports and Physical Activity
During 2010, more than 1.2 million people participated in our sports and fitness programmes which encourage people of all ages and abilities to become more active. From fun fam-ily events to competitive races and tournaments, we support football, running, swimming, cycling or other sports.
In Hungary, the ‘Wake Your Body’ programme celebrated its fifth anniversary in 2010. Over five years, the programme has involved 2.1 million people in 50 different sports. More than 500 fitness events have been held in 500 locations.
In Ireland, the ‘Be Active’ programme was awarded the Busi-ness in the Community Big Tick award for healthy communities for the third consecutive year. During 2010, 106,000 people took part in our sports events across the country.
We also support healthy lifestyle programmes in schools.
Working with government agencies and technical experts,
these projects promote physical activity and disseminate nu-
trition education. In Greece, our ‘Moderation-Balance-Diversity’
programme provides 32 hours of interactive lessons during the
school year. In Poland, the pan-industry campaign ‘Keep Fit’ has
reached almost three million students since it began in 2006.
Children also need a safe place to exercise and play. In Rus-
sia, Ukraine, Belarus and Bulgaria, we have donated 116 play-
grounds to local communities.
Emergency Relief
As extreme weather events become more frequent due to cli-
mate disruption, Coca-Cola Hellenic has committed to provide
swift emergency relief to local communities. We help to deliver
safe drinking water, one of the most critical needs, as well as
mobilising our delivery fleet and employee volunteers if needed.
During 2010, seven of our central and eastern European ter-
ritories experienced severe floods. In these countries, we
worked with local authorities, the Red Cross and others to de-
liver more than 300,000 litres of safe drinking water. We also
provided emergency relief in Russia, after several hundred
wildfires brought death and destruction. This marked our first
collaboration with the Red Cross in Russia.
Coca-Cola Hellenic supports longer-term rehabilitation efforts,
too. In Greece, our campaign ‘Some Forests have their own
Aura’ is restoring forests following the devastating wildfires of
2007. Guided by a local NGO, we have adopted five forested ar-
eas and planted 22,140 trees, pledging to maintain them over
three years. Working with the Ministry of Education, we devel-
oped schools resources and seminars on preventing forest fires.
At the 2010 Global Bottled Water Congress, the programme was
named ‘Best Environmental Sustainability Initiative’.
Healthcare for Remote Greek Communities
In Greece, we stepped up our collaboration with the Hellenic Red Cross in 2010, launching an eight-month preventative healthcare programme with the Ministry of Education and the Ministry of Health and Social Welfare. ‘I Care for My Health’ targeted communities on the dodecanese islands and the remote northern mainland. Awareness of the importance of preventative health is lower there, leading to higher mortality rates. A team of Hellenic Red Cross paediatricians, dentists and opthalmologists visited schools while a fully equipped mobile health unit offered free medical examinations to local residents. More than 1,300 children and 700 adults were examined while 800 parents and teachers attended seminars on healthy lifestyles and first aid.
OUR COMMITMENT IN ACTION
56
Our Approach
Coca-Cola Hellenic has participated in the Global Compact since 2005. We meet our commitments by:
• Integrating the principles into our business
• Addressing the sustainability of our supply chain
• Helping to develop local networks
• Supporting the Compact’s global platforms
• Contributing to broader UN goals
• Reporting transparently
Throughout this report, we demonstrate how we implement the principles of the Global Compact (summarised opposite). Below, we discuss how we promote the UN Global Compact and broader UN goals.
Promoting Local Networks
As the Global Compact expands, its Local Networks play an increasingly important role, rooting the initiative in different national and cultural contexts.
Coca-Cola Hellenic is an active member of these networks in 14 countries1, having joined the Lithuanian network in 2010. In each country, we help to advance the Global Compact and re-sponsible business practices through advocacy and outreach.
Supporting Global Platforms
As founding signatories of the CEO Water Mandate and Car-
ing for Climate, we committed to address water conservation
and CO2 emissions in our operations and our supply chain.
These two leadership platforms also work collaboratively with
governments, NGOs and businesses to achieve broader un-
derstanding and change. A self-assessment of our progress
against both initiatives can be found on our website.
Supporting Broader UN Goals and Issues
Coca-Cola Hellenic also partners directly with UN agencies
– including the UNDP, UNEP and UNESCO – to address sus-
tainability challenges. These projects promote access to water
and watershed conservation; youth development and educa-
tion; entrepreneurship and job creation; disaster relief and
rehabilitation. Directly or indirectly, such projects contribute to
the Millennium Development Goals.
In Nigeria, for example, we are renovating primary schools; im-
proving access to potable water and sanitation; and supporting ef-
forts to tackle HIV/AIDS and malaria. We have also helped to set
up 381 entrepreneurs as small-scale distributors for our business.
Reporting Transparently
A longstanding Notable Reporter, we were further commended
in 2010 by a coalition of global investors for producing a “high-
quality sustainability report deemed useful for investors”. The
group members, who manage more than US$2.1 trillion of as-
sets, are all signatories to the Principles for Responsible In-
vestment, which support the goals of the Global Compact.
We seek third-party feedback on how we can improve our sus-
tainability reporting. Each year, the Fondation Guilé assesses how
we implement our commitments to the UN Global Compact and
report our progress.
Supporting the Top-Performing Local Networks
At the 2010 Annual Local Network Forum in New York, the Serbian and Ukrainian networks were named among the three best-performing in the world. Together with the Japanese network, they received awards for ‘outstanding efforts made to share knowledge and experiences in advancing the Global Compact locally’. Coca-Cola Hellenic is proud to have actively supported both networks since their early days. In Serbia, we lead both the Environmental Working Group and the CSR Working Group, while serving on the Steering Committee and other working groups.
Supporting the UN Global CompactAs the world’s largest corporate citizenship and sustainability initiative, the UN Global Compact has unparallelled importance. Now in its tenth year, the Compact now has more than 8,000 participants in 130 countries.
Leadership role in 2 of the top 3local networks
Actively support 14 local networks
Notable Reporter since 2006
• • • • •
• • • • •
UN GLOBAL COMPACTSUPPORTING THE UNGC
1. Armenia, Belarus, Bulgaria, Croatia, Greece, Hungary, Italy, Lithuania, Poland, Russia, Serbia, Slovenia, Switzerland and Ukraine.
57
How Coca-Cola Hellenic Promotes the Ten Principles
The 10 Principles In Operations In the Supply Chain In Communities
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;
Principle 2: Make sure that they are not complicit in human rights abuses.
Policies: Human Rights; Equal Opportunity; Occupational Health and Safety
Part of management system and training
Third-party audits
Supplier Guiding Principles
Third-party audits
Industry initiatives, e.g. AIM-PROGRESS
Support education and entrepreneurship
Projects to improve access to safe water and sanitation in Nigeria, Hungary, Romania
Labour Rights
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labour;
Principle 5: The effective abolition of child labour;
Principle 6: The elimination of discrimination in respect of employment and occupation.
Human Rights Policy
Part of management system and training
Unions and/or works councils in 23 countries
Formal communications protocol in 23 countries
Third-party audits
Salary parity
Pay for entry-level positions exceeds minimum wage
New gender diversity initiatives
Supplier Guiding Principles
Third-party audits
Industry initiatives, e.g. AIM-PROGRESS
Support broader initiatives, e.g. World Day against Child Labour in Ukraine
Support diversity initiatives, e.g. by local networks in Greece and Serbia
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility;
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
70 plants are ISO 14001-certified
Policies on water stewardship, climate change, packaging
Since 2002, annual targets for water, energy, packaging
Building 20 CHP plants; solar power also being installed
Own 43 wastewater treatment plants; 97% of wastewater treated in 2010
Founding signatory of CEO Water Mandate and Caring for Climate
Partnering to analyse water use in sugar production
Developed climate-friendly refrigeration with suppliers
Developed quad-generation technology with suppliers
Green purchasing criteria for raw materials and equipment (vehicles, coolers, IT equipment)
Set up 19 national recovery organisations
Recycling education programmes
Community water programmes in 26 countries
Mobilise volunteers from workforce, communities, other businesses
Host visits to our wastewater treatment facilities
Promote low-carbon technologies, e.g. at launch of each CHP unit or at CSR Europe marketplace
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Code of Business Conduct; additional Codes for Directors
Mandatory training and certification
Confidential reporting mechanisms
Whistle-blower protection
Regular risk assessment by Internal Audit
Reporting to Audit Committee
Supplier Guiding Principles
Third-party audits
Support anti-corruption initiatives e.g., the new Anti-Corruption Declaration of the Serbian Local Network
58
Environmental Data Table
GRIIndicator
Total Amount2010
Relative Amount2010
Relative Amount2009
Production million litres
Total beverage production 11,875
MATERIALS tonnes g/lpb g/lpb
Materials used EN1
Sugar and fructose syrup 850,616 71.6 72.3
Concentrate 78,870 6.6 6.0
PET (bottles) 288,181 24.3 24.4
Plastic (closures) 26,999 2.3 2.2
Metal (crowns) 23,290 2.0 2.2
PE (labels and stretch / shrink film) 42,157 3.5 3.9
Glass (bottles) 113,240 9.5 11.3
Aluminium (cans) 38,248 3.2 3.0
Paper (labels) 1,412 0.1 0.1
Cardboard 40,791 3.4 4.2
Wood (palettes) 150,152 12.6 7.1
Percentage of materials from recycled sources EN2 30-60%
ENERGY million MJ MJ/lpb MJ/lpb
Direct energy use (plants and fleet) EN3 10,585 0.89 0.91
Electricity 2,749 0.23 0.24
Light heating oil 1,133 0.10 0.09
Heavy heating oil 135 0.01 0.01
Natural gas 2,130 0.18 0.18
LPG 181 0.02 0.02
Others in plants (steam, district heating, own power) 421 0.04 0.03
Diesel 1,889 0.16 0.14
Petrol 1,162 0.10 0.08
Estimated diesel in 3rd-party fleet 1,646 0.14 0.12
Primary energy use EN4
Electricity 7,980 0.67 0.68
Fossil fuels 1,527 0.13 0.13
Energy use of Cold Drink Equipment
Total cooling equipment electricity consumption 16,539
• Coolers 15,725
• Venders 369
• Fountains 445
Energy saved in bottling plants (vs. baseline 2004) EN5 2,513 -27.1% -27.6%
Initiatives for energy efficiency and renewable energies EN6 see pp. 25-29
Initiatives to reduce indirect energy consumption EN7 see pp. 25-29
WATER litres/lpb litres/lpb
Total water received EN8 27,296 million l. 2.30 2.40
Water used 26,597 million l. 2.24 2.32
Water unused (discharged unaltered) 700 million l. 0.06 0.08
Water withdrawal by source (% from municipal sources) 33%
Water habitats affected by withdrawal of water EN9 none
Total recycling and reuse of water EN10 1,244 million l. 0.1 0.1
BIODIVERSITY
Total amount of land owned - 878 ha
Land owned in protected habitats EN11 none
Major Impacts on biodiversity EN12 none
Changes to natural habitats resulting from operations EN14 none
Programmes to protect habitats EN13 see pp. 20-23
Red List species with habitats affected by operations EN15 none
59
GRIIndicator
Total Amount2010
Relative Amount2010
Relative Amount2009
EMISSIONS, EFFLUENTS AND WASTE tonnes g/lpb g/lpb
Greenhouse gas emissions from operations
CO2 from energy used in plants (scope 1) EN16 222,194 18.7 19.0
CO2 from electricity used in plants (scope 2) EN17 337,951 28.5 29.3
CO2 from fuel used in company vehicles EN16 221,280 18.6 16.5
Coolant emissions from Cold Drink Equipment (CO2 eq) EN16 23,500 2.0 2.2
CO2 for product carbonation (CO
2 losses) EN16 33,808 2.8 4.2
CO2 from supplied heating and cooling (scope 2) EN17 10,988 0.9 0.0
Total emissions (scope 1 and 2) 849,719 71.6 71.2
Indirect greenhouse gas emissions 0
CO2 from electricity use of Cold Drink Equipment EN17 2,082,590 175.4 174.9
CO2 embedded in packaging EN17 1,604,467 135.1 137.0
CO2 from sugar 391,530 33.0 33.3
CO2 from 3rd-party transport 121,796 10.3 8.8
CO2 from head office flights EN17 2,105 0.2 0.1
CO2 from product carbonation 77,925 6.6 6.3
Programmes to reduce greenhouse gas emissions EN18 see pp. 20-23
Ozone-depleting substance emissions EN19
CFCs and HCFCs 0.148 <0.001 <0.001
Other significant air emissions EN20
NOx
4,561 0.38 0.39
SO2
3,194 0.27 0.27
Particulate Matter 504 0.04 0.04
WASTE tonnes g/lpb g/lpb
Amount of solid waste EN22
Total amount 120,493 10.1 g/lpb 11.2 g/lpb
Recycling and energy recovery 102,907 85% 83%
Hazardous waste
Hazardous waste generated EN24 779 0.1 g/lpb 0.1 g/lpb
EFFLUENTS
Discharges to water
Quantity of wastewater discharge EN21 14,380 million l. 1.2 l/lpb 1.4 l/lpb
Total COD (Chemical Oxygen Demand) produced EN21 5,750 t O2
484 mg O2/lpb 495 mg O
2/lpb
Total COD reaching the environment EN21 1,044 t O2
88 mg O2/l 113 mg O
2/l
Water habitats affected by water discharges EN25 0
Spills of chemicals, oils, fuels EN23 164 t 0.014 g/lpb 0.004 g/lpb
PRODUCTS AND SERVICES
Significant environmental impacts EN26 CFCs and HCFCs
Percentage reclaimable products EN27 3rd party carriers
Rate of returnable packaging 11% 12%
Possible rate of packaging recycling see pp. 32-33
Achieved rate of packaging recycling see pp. 32-33
COMPLIANCE
Incidents and fines EN28 6 minor incidents, no significant fine
TRANSPORT ml/lpb ml/lpb
Environmental impacts of transport EN29 3rd party carriers
Number of vehicles 21,257
Fuel consumption (litres) 85,174,774 l. 7.2 6.3
EXPENDITURES
Total environmental expenditures EN 30 not public
Note: Core GRI indicators are indicated in bold typeface. Additional GRI indicators are indicated in normal typeface.
60
GRI TOPIC 2009 2010
EMPLOYEE DEVELOPMENT
LA1 Total workforce (no. of employees) 44,801 43,189
Full Time Equivalents (FTEs) 44,231 43,570
Permanent employees >95% >95%
Training and Development
LA10 Average training hours per employee 20 21
Human Rights
HR4-7 No. of workplace accountability audits 13 2
HR4-7 No. of human rights violations resulting in litigation against the Company 0 0
Equality and Diversity
LA13 Women in management 26.6% 24%
LA14 Male-to-female salary equality 1% 2%
EC7 Managers of local origin 88.0% 91%
HR4 Breaches of equality legislation 0 0
Labour Rights
LA4 Employees covered by collective bargaining 46% 48%
LA4 Employees belonging to independent trade unions 24% 27%
Health and Safety
LA7 Fatalities (includes contractors) 5 9
LA Accident incidence (accidents with >1 day absence per 100 employees) 1.4 1.1
LA7 Sickness absence (days absent) 262,537 233,898
LA7 Average Sickness Days per FTE 5.76% 5.36%
No. of plants with OHSAS 18001 certification 53 65
% of production volume covered 76% 93%
CONSUMER HEALTH
No. of new product launches 100 100
Percentage of still beverages (juices, waters, etc.) 37% 36%
Average calorie content (per 100ml) 30.3 30
PR3 Rollout of GDA labels in EU territories All sparkling beverages, most others
100%
PR5 Consumer complaints (per million containers sold) 0.33 0.28
No. of plants with ISO 9001 certification 75 plants (99% of volume)
75 plants (99.6% of volume)
No. of plants with ISO 22000 certification 58 plants (82% of volume)
60 plants (78% of volume)
SUPPLIER ENGAGEMENT
HR2 No of independent SGP audits 35 61
EC1 Total supplier spend €3,955 million €4,030 million
EC6 Spending within local territories (includes EU) 90% 90%
COMMUNITY
EC1 Economic benefits
Income taxes €142 million €137 million
Salaries & benefits €1,129 million €1.163 million
Supplier spend €3,955 million €4,030 million
EC1Investment in community projects €12 million
(1.9% pre-tax profit)€9.5 million
(1.4% pre-tax profit)
Employee volunteers 7,500 6,000
Political contributions 0 0
Social and Economic Data Table
61
The index below lists the disclosures and performance indicators covered in this report and in our Annual Report (AR). Text in italics refers to additional indicators. Disclosures on Management Approach can be found on the Coca-Cola Hellenic website, as well as further information on programmes.
GRI Index
Strategy & Analysis1.1 1, 5, 6-7, 8-91.2 8-9, 14, 17, 25-26, 31, 35, 41-44, 47-49, 50-51, 53-57
Organisational Profile2.1 Front cover2.2 2-32.3 2-32.4 Inside back cover2.5 2-32.6 42.7 2-3, 9, 14, 532.8 2-3, 8-9, AR2.9 AR2.10 17, 21, 27, 29, 38, 41-42, 63
Report Parameters3.1 Contents3.2 20093.3 Annual3.4 Inside back cover3.5 Contents, 103.6 Contents3.7 Contents3.8 Contents3.9 Contents3.10 N/A3.11 Contents3.12 623.13 Contents, 64
Governance, Commitments, Engagement4.1 AR4.2 AR4.3 AR4.4 12, 14-15, 444.5 11, 45, AR4.6 AR4.7 AR4.8 10-124.9 10-114.10 10-114.11 254.12 10-11, 25, 26, 28-29, 36-37, 504.13 28, 32, 36-374.14 13-154.15 134.16 13-154.17 15
EnvironmentalEN1 31, 58EN2 32EN3 27, 58EN4 58EN5 26-27, 49, 58EN6 26-28, 49EN7 28-29, 31, 49, 58EN8 17-19EN9 NoneEN10 17EN11 NoneEN12 NoneEN13 22-23EN14 NoneEN15 NoneEN16 25-27, 59EN17 59EN18 26-29, 31-33EN19 59EN20 59EN21 18, 59EN22 33, 59EN23 59EN24 59EN25 59EN26 17-18, 26-28, 31-32, 49, 58-59EN27 32EN28 12, 59EN29 27, 59EN30 Not reported publicly
Human RightsHR1 N/A 1
HR2 50HR4 NoneHR5 NoneHR6 NoneHR7 NoneHR8 N/AHR9 N/A
Labour Practices & Decent WorkLA1 41LA2 16%LA4 44LA5 45LA6 51LA7 41-42
Labour Practices & Decent WorkLA8 42LA9 41-42 2
LA10 43LA12 43LA13 43-44LA14 44FP3 45
SocietySO1 9, 15,17-18, 32-33, 45, 50-51SO2 11SO3 12SO4 12SO5 14, 20, 25, 28, 32, 36-38SO6 NoneSO7 Not reported publiclySO8 12FP4 21, 36-38, 42, 55
Product ResponsibilityPR1 35-36, 39PR2 39PR3 36PR4 N/APR5 14, 37PR6 36-37PR7 37PR9 12FP5 39FP6 36FP7 36FP8 36
EconomicEC1 2, 45, 53EC2 25, 26EC3 42, 44, AREC4 £6.75mEC5 45EC6 50EC7 41, 43-44EC8 21, 32-33, 54, 55EC9 53
Indicator Page Indicator Page Indicator Page
1. The Company has made no significant investment agreement in 2010.2. The Company’s health and safety programmes are separate from union agreements.
62
Awards and Recognition
Overall
• Bosnia – Socially Responsible Company of the Year Award, DOBRO ’10
• Estonia – Most Socially Responsible Company in Estonia, Responsible Business Forum
• Greece – Gold (highest category), 2nd Hellenic Corporate Responsibility Index
• Greece – Best Stakeholder Inclusiveness, Bravo CSR Award, Quality Net Foundation
• Lithuania – Environmental Company of the Year, UNDP and Ministry of Environment
• Poland – Responsibility Laurel, Polish Confederation of Private Employers Lewiatan; NSZZ Solidarnosc Trade Union and Deloitte
Water Stewardship
• Group – Special Commendation for ‘Outstanding and sus-tainable contribution to international water stewardship’, 2010 Water Innovation Awards
• Greece – Best Environmental Sustainability Initiative, 2010 Water Innovation Awards
• Greece – European Excellence Award (Mission Water)• Greece – CSR Award, Greek Association of Advertising
(distinction for water resources)• Belarus – Commendation, Ministry of Natural Resources
& Environmental Protection• Hungary – CSR Best Practice, Hungarian PR Association• Italy – Confimprese award (water-saving and eco-sustain-
ability)• Romania – Distinguished Honoree Medal (Adopt a river),
International Business Awards (Stevie Award)
Energy and Climate Change
• Romania – Business with the most reduced impact on
the environment in Romania, Business Review Investment
Awards Gala
• Ireland – Energy Efficiency Award, Sustainable Ireland
• Group – Platts Energy Industry Award (finalist)
• Group – International Green Fleet of the Year (3rd place),
Fleet Europe
Packaging and Recycling
• Slovakia – ECO TOP award for ULTRA glass, Slopak & Slo-
venian Chamber of Commerce
• Bulgaria – Investor in Environment (My Green City), Re-
sponsible Business Awards, Bulgarian Business Leaders
Forum
• Romania – Environment Protection (2nd place - I Recycle,
thus I Live), Civil Society Gala Awards
• Romania – Communication Campaign of the Year (Sep-
arate Collection Programme), International Business
Awards (Stevie Award)
• Romania – Gold Award, Community Relations (Separate
Collection Programme), League of American Communica-
tions Professionals
Consumer Health
• Greece – 2010 Hellenic CSR Excellence Awards
• Ireland – Big Tick Healthy Communities, Business in the
Community
• Serbia – Quality Champion (fruit juice category) & four gold
medals for quality, International Agriculture fair in Novi Sad
Following the wildfires that ravaged parts of Greece in 2007, our campaign ‘Some Forests have their own Aura’ is helping to rehabilitate forests. We have adopted five forested areas and planted 22,140 trees, pledging to maintain them over three years. The programme was named ‘Best Environmental Sustainability Initiative’ at the 2010 Global Bottled Water Congress.
For a third consecutive year, our Be Active programme on the island of Ireland was awarded the prestigious Big Tick Healthy Communities award from Business in the Community. Working with sporting bodies and councils, the programme engaged 106,000 participants in a wide variety of sports.
Below are the most significant awards and recognitions for our sustainability programmes in 2010.
63
• Bulgaria – National Competition for Innovations in Soft
Beverages Industry 2010 (first all-natural sparkling soft
drinks)
Employee Development
• Greece – Best Workplaces Hellas 2010 (1st Place) and
Best Workplaces in Europe (6th place)
• Ukraine – Best Employer in Ukraine and Best Employer
in Central & Eastern Europe 2009/2010 (2nd place), Hewitt
Associates
• Ukraine – Best Employer for Students 2010, Ernst & Young
survey of students
• Croatia – Employer Partner Certificate, Selectio & Moj-
Posao
• Czech Republic – Most Desired Company, AIESEC
• Belarus – Best Employer 2010, SATIO Centre of System
Business Technologies
• Bosnia – Employer Partner Certificate, Selectio
• Hungary – Best Employers Award, Hewitt Associates
• Italy – No.1 Employer of Choice in Sales, Survey of Busi-
ness Students, University of Rome
• Lithuania – Most Desirable Employer (3rd place), Busi-
ness News
• Moldova – Best Employer 2010, AXA Management Con-
sultants
• Poland – Top 100 Ideal Employers (7th place), UNIVERSUM
• Romania – Employer of Choice for Young Talents 2010,
Catalyst Recruitment Solutions
• Russia – Attractive Employer Diploma & 14th place in Top
50 Dream Employers and Best Employer among FMCG
Companies, Superjob and Headhunter job portals
• Slovenia – Most Respected Employer, career web portal
Moje Delo
• Serbia – Most Desirable Employer (2nd place), AIESEC
• Group – International Fleet Safety Award, Fleet Europe
Community Investment
• Belarus – Belarusian Children’s Fund - Commendation for
long-term partnership in social programmes
• Estonia – Melissa F Wells Award for Corporate Citizenship;
Most Responsible Company in Tallinn
• Latvia – Socially responsible partner, Junior Achievement
– Young Enterprise Latvia
• Nigeria – Lagos State Government CSR Award for 2010
• Poland – Pearl of Wielicki Poviat award
• Russia – Most Responsible Company in Krasnoyarsk;
Most Responsible Company in Buriyat Republic; Volunteer
of the Year (Moscow)
• Serbia – AIESEC special award for contribution to Respon-
sible Youth-Sustainable Future
• Ukraine – Diploma for contribution to social-economic and
cultural development of Brovary District
In Romania, we gained the Employer of Choice for Young Talents award, one of 16 employer awards we gained during 2010.
In 2010, our efforts to improve the safety performance of our fleet while reducing its environmental impacts were recognised with Fleet Europe awards for fleet safety, environmental performance and fleet management. This was the first time a company had gained recognition in three categories at the same time.
AWARdS
64
Validation Statement
Independent Assurance Report on the Report-ing for 2010 To the management and the stakeholders of Coca-Cola Hellenic Bottling Company S.A.
denkstatt GmbH has been commissioned by the Coca-Cola Hellenic Bottling Company S.A. (thereafter, “the Company”) to carry out an independent third party assurance engagement in ac-cordance with the AA1000 AS 2008 Assurance Standard (AA1000 AS (2008)) on the Company´s 2010 Corporate Social Responsibility (CSR) Report (thereafter, “the Report”) in its printed and download-able pdf formats. We have reviewed the Report of the Company for the financial year 2010, which comprises the contents of the Report as well as the data. The assurance engagement has cov-ered the nature and extent of the Company’s incorporation of the AA1000 Accountability Principles Standard (AA1000APS (2008)) principles (inclusivity, materiality and responsiveness) with respect to stakeholder dialogue. Furthermore, the application level of the Guidelines of the Global Reporting Initiative (GRI G3 1.0) has been checked.
Management’s Responsibility The Company’s Management is responsible for preparing the Report and related web-text, and the information and statements within it. They are responsible for identification of stakeholders and material issues, for defining commitments with respect to corpo-rate responsibility performance, and for establishing and maintain-ing appropriate performance management and internal control systems from which reported information is derived. Furthermore, establishing data collection and registration, internal control sys-tems to ensure reliable reporting, specifying acceptable reporting criteria and choosing data to be collected for intended users of the Report, as well as preparing the Report in accordance with the Reporting Guidelines of GRI is the responsibility of the Company’s Management.
Assurance Provider’s Responsibility On the basis of our work, our responsibility is:
• To express a conclusion on as well as to make recommenda-tions for the nature and extent of the Company’s adherence to the AA1000APS (2008) principles.
• To express a conclusion on the reliability of the information in the Report, whether it is in accordance with the criteria of the GRIGuidelines.
Our team of experts is competent and experienced in assurance engagements related to nonfinancial information. In addition, our team is competent and experienced in assessing nonfinancial in-formation and sustainability management, thus qualified to con-duct this independent assurance engagement. During 2010 we have not performed any tasks or services for the Company or other clients which would lead to a conflict of interest, nor have we been responsible for the preparation of any part of the Report.
Scope, Standards and Criteria Used
We have performed our work to obtain moderate assurance that
the information in the Report is free of material misstatements.
Furthermore, we planned and performed our work based on the
GRI G3 and in accordance with the AA1000 AS (2008). We used the
criteria in the AA1000APS to perform a Type 2 engagement and
to obtain a moderate level of assurance regarding the nature and
extent of the Company’s adherence to the principles of inclusivity,
materiality and responsiveness.
Methodology, Approach, Limitation and Scope of Work
We planned and performed our work to obtain all the evidence,
information and explanations that we considered necessary in
relation to the above scope. Our work included the following pro-
cedures using a range of evidence gathering activities which are
further explained below:
• Inquiries and interviews with members of Executive Manage-
ment, staff from the sustainability department, the reporting
department, as well as Management representing different
functions in the Group, regarding the Company’s adherence
to the principles of inclusivity, materiality and responsiveness.
This includes Management’s commitment to the principles, the
existence of systems and procedures to support adherence to
the principles and the embedding of the principles at the cor-
porate level.
• Understanding of relevant documentation.
• Site visits to 10 bottling plants, with a focus on developing and
emerging markets: Sarajevo (BosniaHerzegovina), Kostinbrod
(Bulgaria), Abuja, Apapa (both Nigeria), Staniatki (Poland), Ploi-
esti (Romania), Moscow, Davydovskoye, Yekaterinburg (all three
Russia), and Kiev (Ukraine).
• Inquiries and spot tests regarding evidence of implemented pro-
cedures and processes, as well as the Company´s policies (plant
and corporate level).
• Requests and spot tests regarding selected evidence documen-
tation, to assess the existing systems for data collection and
registration, and procedures to ensure reliable and consistent
reporting from the plants to the corporate level.
• Checking the GRI index in the Report, to ensure consistency with
the GRI application level requirements of A+.
The assurance scope covered the whole Report and focussed on
systems and activities of the Company during the reporting pe-
riod, with the following exceptions:
• The scope of work did not involve verification of financial data
(p. 2+3) and the sustainability milestones (p. 4+5).
• The New Water Stewardship Policy is under development and
has not been considered during the validation.
65
Willibald KaltenbrunnerLead Auditor, Managing Director denkstat
Findings and Conclusions Regarding inclusivity:• The Company’s Management has a strong commitment to inclusiv-
ity and stakeholder engagement. Also, the Company has effective systems in place for stakeholders to participate in the development of the organisation’s response to sustainable development issues, particularly through the stakeholder panel at the corporate level.
• However, processes at some bottling plants could be strength-ened to ensure the full range of stakeholders is identified and appropriately engaged. The role and selection criteria for the Company’s departments at the national level could be clearer to ensure balanced representation and focused feedback.
Regarding materiality:• The Company has a process in place to determine material is-
sues at the management level. Also, the Company has in place a number of relevant senior management level governance bodies to discuss, evaluate and determine the materiality of sustainabil-ity issues on ongoing basis (CSR committee and CSR council).
• However, the criteria for assessing materiality are more infor-mal, which could lead to inconsistent assessments across the operating companies. Emerging issues could also be better ad-dressed within the materiality assessment.
Regarding responsiveness:• The Company is committed to being responsive to stakeholders
as is evident from the wide range of media, forums and com-munication channels used by the Company to communicate on sustainability issues.
• The Company was found to be responsive especially to exter-nal stakeholder concerns and expectations. This was achieved through the Company’s allocation of resources to stakeholder engagement, the timeliness and accessibility of reported infor-mation, and the types of communication mechanisms regularly used. The responsiveness to internal stakeholder concerns is less structured and shows room for improvement.
• The Company’s group policies and guidance on management of material issues are comprehensive; therefore most issues are well managed across the business.
Regarding performance information:• The findings of the assurance engagement provide confidence
in the systems and processes used for managing and reporting sustainability performance information. Data trails selected were identifiable and traceable, and the personnel responsible were able to reliably demonstrate the origin(s) and interpretation of data.
• The majority of data and information presented were found to be accurate. Some data inaccuracies identified were found to be at-tributable to interpretation and aggregation errors.
• Data management within the group is on a high level of reli-ability. Furthermore, the Company shows perfect calculation of
indirect environmental impacts (such as CO2 emissions of cold
drink equipment) and community involvement projects (London Benchmark Group).
• The Company shows very good processes of sustainability man-agement with long term goals for water and energy. The Company undertakes many efforts to work toward a low carbon industry (climatefriendly refrigeration, QuadGeneration, CHP Technology).
Based on our review, nothing has come to our attention which causes us not to believe that the information presented in the Report of the Company is free of material misstatements and has been stated in accordance with the criteria mentioned. Furthermore, nothing has come to our attention causing us to believe that the Company does not adhere to the AA1000APS (2008) principles or with the GRI G3 guidelines application level requirements of A+.
Recommendations The following is an excerpt from the observations and opportu-nities reported back to the Management of the Company to en-courage continual improvement. However, these do not affect our conclusions on the Report.
Regarding inclusivity:• We recommend the Company to develop a more structured
approach to stakeholder engagement at the local site level and consider implementing a formalised materiality assessment process that would assist in informing the content and prioritisa-tion of information reported.
Regarding materiality:• We recommend that the process and criteria applied to assess
materiality of nonfinancial issues is formalised and documented to ensure a consistent process.
Regarding responsiveness:• We recommend improving the inclusion of internal stakeholder
concerns through the involvement of local unions and working councils in the stakeholder panel and within CSR activities.
• The amount of information on some relevant issues should be increased, for example, the responsible sale and marketing outside the European Union, as well as corruption prevention, especially in emerging and developing markets.
Additional recommendations:• Implementation of long term goals for packaging, consumer
health, employee development, supplier engagement, and com-munity involvement.
• Establishment of a formal process on the calculation of data to ensure reliability throughout the Company, especially for waste ratio and the waste recycling ratio, as well as for the data on corporate volunteering.
Vienna, 6 April, 2011denkstatt GmbH
66
Stakeholder Review Statement
Relevance of Reported Topics
The Social Responsibility Report 2010 addresses all major
sustainability issues relevant to Coca-Cola Hellenic. We
welcome the introduction of a section on sustainable ag-
riculture and water use in the chapter ‘Supplier Engage-
ment’. The more detailed discussion on the challenges of
consumer health and obesity is positively noted. We also
found more information on compliance and diversity is-
sues than in previous reports.
We think, however, that the materiality analysis that de-
fined the company’s seven key focus areas should be
explained more clearly. How are priorities identified and
how do they drive the overall corporate agenda?
Processes and Achievements
The report describes all the principal processes by which
Coca-Cola Hellenic’s operations impact on its stakehold-
ers and the environment. It adequately and quantitatively
assesses the magnitude of immediate impacts. The chap-
ter on packaging reports according to all standard envi-
ronmental parameters, including source reduction, recy-
cling, recycled content and sustainable material sourcing.
Nevertheless, the importance of packaging optimisation
is not clearly communicated: using the right type and
amount of packaging to meet the needs of all stakehold-
ers in the value chain, including consumers.
In our view, water is the most difficult issue to analyse.
While Coca-Cola Hellenic’s reporting on water steward-
ship is good, it would be interesting to learn in future re-
ports about the company’s role in defining standards for
corporate behaviour and performance related to water.
On social aspects, Coca-Cola Hellenic could adopt and
showcase a more pro-active attitude not only towards
current sustainability issues but also to major upcoming
trends, such as demographic changes. Such changes as
the ageing population impact the company not only inter-
nally in terms of workforce, but also externally in terms
of consumers.
Quality of Reporting
The 2010 report is very clear and accessible to a wide
range of readers. It is well structured – each chapter con-
tains challenges, key achievements and current efforts. In
addition, the UN Global Compact and GRI indices allow for
easy navigation. The use of plain language, clear charts
and graphs, a visually comfortable presentation style and
well-chosen illustrations and photography all combine to
deliver a comprehensive and positive report. More specif-
ic case study boxes could illustrate and highlight achieve-
ments or best practices.
We particularly like the consistent presentation of targets
and progress, even though in some instances these could
be more concrete, such as supplier engagement. We ap-
plaud the decision to reintroduce independent verifica-
tion. With so much information in one report, this helps
to address the reader’s need for assurance that there is
transparency and clarity in reporting results. Since the
report contains mainly positive information, however, ad-
dressing more challenges or non-achievements would
add to the credibility of the report.
In future, sustainability reporting is likely to face the chal-
lenge of meeting diverging information needs of inves-
tors, consumers, academia and NGOs. We think that in its
current form, Coca-Cola Hellenic’s report will not meet
these expectations. For example, water experts may be
interested in a water balance map for each hydrological
Coca-Cola Hellenic invited a panel of external stakeholders to assess the content and quality of its sustainability reporting for the first time. The statement below represents the panel’s assessment of the company’s 2010 Social Responsibility Report. We express our views as individuals, not on behalf of our organisations.
67
system from which the company and its suppliers take
water, understanding how this is balanced against in-
dustrial and domestic water use and how this affects the
vulnerability of individual catchments. We look forward
to discussing innovative ways to further evolve the com-
pany’s reporting.
Conclusion
Coca-Cola Hellenic’s 2010 report includes the most mate-
rial sustainability issues faced by the company. We believe
that the scope, depth, and achievement levels reported
are outstanding. Nevertheless, we encourage Coca-Cola
Hellenic to build on its strong reporting and to consider
these recommendations in preparing future reports.
The aspiration for a sustainable global society depends
greatly on the responsibility and creativity of private in-
dustry. If the potential of private industry is to be real-
ized, powerful leadership will be required from major
companies. We urge the company to continue its efforts
in influencing, by example and persuasion, other major
companies and their supply chains to develop their strate-
gies for sustainability.
Participants and Process
In November 2010, the Stakeholder Panel met to discuss Coca-Cola Hellenic’s sustainability programmes in
advance of the 2010 report’s development. The panel then assessed the report in a two-stage process. Stage one
was an analysis of the initial draft, designed to identify errors or omissions and to suggest how the report could be
improved. Stage two was a formal assessment of the report that included a telephone conference in March 2011.
An honorarium was offered for our contribution to the review statement.
The Stakeholder Panel includes the following individuals:
• Alain Beaumont, UNESdA
• Professor Geoffrey Boulton, University of Edinburgh
• Julian Carroll, EUROPEN (European Organisation for
Packaging and the Environment)
• Sarah dekkiche, CSR Europe
• dr. Aileen Ionescu-Somers, IMd’s Centre for
Corporate Sustainability Management
• Oliver Johner, Fondation Guilé (Chair)
• Stuart Orr, WWF International
• Stephan Savic, AGRANA Beteiligungs-AG
• Philip Weller, ICPdR Secretariat
• Venia Zafolia, Frigoglass
68
AIESEC: the world’s largest student-run organisation that focus-es on providing a platform for youth leadership development.
Bottlers: Business entities that sell, manufacture, and distrib-ute beverages of The Coca-Cola Company under a franchise agreement
Bottling Plant: A beverage production facility, including associ-ated warehouses, workshops, and other on-site buildings and installations
Caring for Climate: This framework allows UN Global Compact participants to advance practical solutions to climate change and help shape public policy and public attitudes
CEO Water Mandate: Launched by the UN Global Compact, this is a call to action and a strategic framework for compa-nies to address water sustainability in their operations and supply chains
Coca-Cola Hellenic: Coca-Cola Hellenic Bottling Company S.A. and, as the context may require, its subsidiaries and joint ven-tures. Also referred to as “the Company” or “the Group”
Coca-Cola System: The business system comprising The Coca-Cola Company and its bottling partners
Cold Drink Equipment (CDE): Coolers, vending machines and fountains in the marketplace that cool beverages for immediate consumption
Combined Heat and Power (CHP): A power generation system that can produce power, heat, cooling and in some cases CO
2 in
a combined process
Consumer: Person who drinks Coca-Cola Hellenic’s beverages
Customer: Retail outlet, restaurant or any other business that sells or serves Coca-Cola Hellenic products to consumers
CSR: Corporate Social Responsibility
Distribution: Getting the product from bottling plant to market-place; includes sales, delivery, merchandising and local account management
Energy Use Ratio: The KPI used by Coca-Cola Hellenic to mea-sure energy consumption in the bottling plants, expressed in megajoules of energy consumed per litre of produced bever-age (MJ/lpb)
EU Platform for Action on Diet, Physical Activity and Health: A multi-stakeholder initiative to combat overweight and pro-mote physical activity
GDA: Guideline Daily Amount
Global Reporting Initiative (GRI): The GRI sustainability report-ing guidelines are the most widely used framework for report-ing CSR performance
Greenhouse Gas (GHG) Protocol: This widely used internation-al accounting tool allows organisations to quantify and manage greenhouse gas emissions
Hydrofluorocarbon (HFC): Chemical compound used in cool-ing equipment, which contributes to global warming
ICPDR: The International Commission for the Protection of the Danube River is our partner in the Green Danube programme
ISO: International Standards Organisation
KPI: Key Performance Indicator
Landfilled Waste: Waste from bottling operations which is not recycled, re-used or incinerated with heat recovery, but which is sent to landfill for disposal
LBG (London Benchmarking Group) Model: This tool is used by leading businesses to measure corporate community in-volvement
Lightweighting: Reducing the amount of raw materials used to produce lighter packaging
Litres of Produced Beverages (lpb): Unit of reference for en-vironmental indicators
Operations: manufacturing activities (bottling plants) and distri-bution activities (vehicles) under our operational control
PET (Polyethylene Terephthalate): A form of polyester used to make lightweight, shatter-resistant bottles for beverages, food and non-food. PET can be recycled into new containers, cloth-ing, carpeting, automotive parts and industrial materials
PET-to-PET or Bottle-to-Bottle: A recycling system for post-consumer PET bottles. Used bottles are collected, sorted, cleaned, ground and transformed into new material for manu-facture in PET bottle preforms
Plant: Also referred to as bottling plant, a beverage production facility, including associated warehouses, workshops, and other on-site buildings and installations
Supplier Guiding Principles (SGPs): Coca-Cola Hellenic’s so-cial and environmental requirements for suppliers
SIFE: An international non-profit organisation that works with business and higher education to help students become so-cially responsible business leaders
The Coca-Cola Company (TCCC): The world’s leading produc-er of non-alcoholic concentrates and syrups used to produce nearly 400 beverage types under licence agreements
UNESDA: The Union of European Beverages Associations is the European trade association representing the non-alcoholic beverages industry
UN Global Compact (UNGC): The world’s largest corporate citi-zenship initiative provides a framework for businesses to align strategies with its ten principles promoting labour rights, hu-man rights, environmental protection and anti-corruption
Waste Ratio: The KPI used by Coca-Cola Hellenic to measure waste generation in the bottling plant, expressed in grammes of waste generated per litre of produced beverage (g/lpb)
Waste Recycling: The KPI used by Coca-Cola Hellenic to mea-sure the percentage of production waste at bottling plants that is recycled or recovered
Water Use Ratio: The KPI used by Coca-Cola Hellenic to mea-sure water use in the bottling plant, expressed in litres of water used per litre of produced beverage (l/lpb)
Glossary of Terms
2010 CSR Fact Sheet
developing our business in a sustainable manner is part of the corporate mission of Coca-Cola Hellenic. We must not only refresh consumers, partner with customers and reward shareholders, but do so while protecting the environment and enriching the lives of our communities.
With annual sales of more than two billion unit cases, Coca-Cola Hellenic is one of the largest bottlers of products of The Coca-Cola Company. Operating in 28 countries, the Company serves a diverse population of approximately 560 million people.
• Signed Consumer Goods Forum resolutions on deforestation and refrigeration
• Launched solar energy programme • 3rd year of absolute water reduction• Launched carbon-efficient commercial
coolers • Anti-corruption training rolled-out• Employer of choice awards in
16 countries• 13-point rise in employee engagement• Founding member of European Water
Footprint Sustainability Assessment Sounding Board for Sugar
• First Stakeholder review of CSR report• 99% of volume produced by ISO 9001
certified plants
Mission
Overview Sustainability Milestones
0
Production volume-2%
vs 2004 baseline
22.2
25.829.1 28.9 28
27.3no
increase
5.7 3.2
1.3
Total Water Use(billion litres)
Production volume
Direct CO2 Emissions(tonnes CO2)
-20%vs 2004baseline
-2%vs PY
740 785847 845
850
895
+7%vs 2004 baseline
+4%vs 2004 baseline
5.9 6.36.8
0.20.3 7
6.6
-25%vs 2004
6.7
0.7
Production volume
Total Energy Use(billion MJ)
Average Calorie Content(kcal/100ml)
3437
3336
32 31 30.2 29.8 30.3 30
-19%vs 2001
Certifications of Bottling Plants(% of plants certified)
ISO 9001
ISO 14001
OHSAS 18001
ISO 22000
FSSC 22000
-80%vs 2004baseline
37.2
29.734.3
33.7
21.6
4.5
17.6
-58%vs 2004 baseline
Production volume
Total Landfilled Waste(million kg)
2010 CSR Fact SheetWater Stewardship
Energy and Climate
Packaging and Recycling
Consumer Health
Employee Development
Supplier Engagement
Community Investment
We work to ensure the sustainability of our water extraction. Each bottling plant conducts risk assessments of water resources. Water efficiency has improved by 19% since 2004 and absolute water use has dropped despite increased production volume. We work with suppliers, NGOs and others to address indirect water use. Working in partnerships, we protect watersheds and, raise local awareness. By the end of 2010, 99% of all wastewater was treated.
Our key strategy is the construction of up to 20 on-site combined heat and power (CHP) units. Together with other energy-savings initia-tives in plants and fleet, this programme has improved plant energy efficiency by 23% since 2004; absolute energy use has essentially stabilised. We launched a solar energy programme, installing photovoltaic panels on plant rooftops in Italy. By 2015, we will reduce CO
2
emissions by 25%, compared to 2004. We work with others to reduce our indirect emissions, developing and promoting low-carbon technologies such as climate-friendly refrigeration. Through water stewardship, we support adaptation to climate change.
We have significantly reduced the material content of all packages; our PET bottles are now 16% lighter than 2004. We also use recycled content and in 2011 will trial PlantBottle which has 30% renewable content. Our end-goal is to close the recycling loop, converting used packages into new. Working with others, we have set up 19 national recovery organisations. In these countries, an average of two-thirds of packaging is collected. We continue work to set up systems elsewhere. In our plants, we recycle 85% of production waste and since 2004 we have halved waste sent to landfill.
To help consumers enjoy beverages while maintaining a healthy weight and lifestyle, we are expanding our product range, especially reduced-calorie, nutritionally enhanced or all-natural beverages. The average calorie content of our beverages has fallen 19% since 2001. We are making nutritional information highly visible with front-of-pack information about calorie content. We have implemented industry codes on responsible marketing. Working with others, we promote physical activity. In 2010, over 1.2 million people partici-pated in sports and fitness programmes. In Hungary, our Wake Your Body programme has involved more than two million people in fitness activities over the past five years.
We aim to help employees achieve their potential, engage openly with them and safeguard and promote health and well-being in the workplace. We increase access to training, coaching and career development opportunities. As a result, 91% of our leaders are of local origin. Since women account for only a quarter of leaders, we launched new gender diversity initiatives. Our safety programme continues, with serious accidents down again. Nevertheless, road traffic incidents still claim lives, making road safety a particular focus. We have launched new health and wellness programmes. Engagement levels have risen significantly since 2007. 16 countries received good employer awards.
The bulk of our social, environmental and economic impacts lie in the supply chain. We now work with suppliers to tackle indirect emissions from our cold drink equipment and packaging, developing low-carbon, resource-efficient technologies. Together with sugar producers and others, we are studying our indirect water use. In addition, we aim to improve economic and social conditions in our supply chain. To date, we have assessed workplace practices at 121 sites.
We support local communities through core business activities. We develop community investment programmes that tackle locally relevant issues in partnership with NGOs, UN and government agencies. In 2010, we invested €9.5 million in community projects, or 1.4% of pre-tax profit. Strategic focus areas include: water and environmental protection; youth development; sports and fitness; and emergency relief. In 2010, we provided emergency relief in many countries, supporting national Red Cross organisations and local authorities as they responded floods to droughts and wildfires. As active members of local networks of the UN Global Compact, we help promote corporate responsibility and sustainability, mobilising local businesses.
Design and production: Peak advertising. Photography: Mark Fallander. Consultant: Katie Meech. Printing: Baxas S.A. Paper: Greencoat Plus Velvet contains 60% recycled fibre and 40% fibre from FSC forests.
Emerging markets
Armenia
Belarus
Bosnia and Herzegovina
Bulgaria
FYROM
Moldova
Montenegro
Nigeria
Romania
Russia
Serbia
Ukraine
Developing markets
Croatia
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Poland
Slovakia
Slovenia
Established markets
Austria
Cyprus
Greece
Italy
Northern Ireland
Republic of Ireland
Switzerland
Published by Coca-Cola Hellenic Bottling Company S.A.9, Fragoklissias Str., 151 25 Maroussi, Athens, Greece, tel.: +30 210 618 3100, fax: +30 210 619 5514www.coca-colahellenic.comsustainability@cchellenic.comcsrreport.2010.coca-colahellenic.com